DAPL helps bring in additional $18M in oil tax revenue during first months

Oct 10, 2017

A segment of the Dakota Access Pipeline sits unburied in Morton County during the fall of 2016.
Credit Amy Sisk / Inside Energy

The Dakota Access Pipeline is raising the price of Bakken crude and making it more competitive with other shale plays, according to North Dakota officials.


For years, the state’s remote location hurt Bakken producers.

It cost a lot to ship the state’s crude hundreds of miles to market on trains, compared to oil from places like Texas that doesn’t have to travel far to refineries along the Gulf Coast.

But since Dakota Access became operational in June, much more of North Dakota’s oil is being carried by pipeline, the cheapest transportation method.

As a result, the price of Bakken crude has gone up $2 per barrel relative to the nation’s benchmark price. This means North Dakota’s oil tax revenue is also going up. The North Dakota Pipeline Authority estimated Tuesday that oil production has brought in an additional $18 million from June to August.