On July 6, the US District Court issued an order for the Dakota Access Pipeline to shut down and remove all oil by Aug. 5. This action comes three after the pipeline has been operating safely, following multiple years of hearings, reviews and legal proceedings. The court-ordered environmental impact statement will take even more years to complete and will undoubtedly cost taxpayers millions of dollars.
The ripple effect of this ruling is catastrophic and impacts not only the oil and gas industry in North Dakota on every level, but other industries as well. This will also create unnecessary harm for farmers who rely on rail to get their product to market. More rail demand from oil will raise prices for farmers. Isn’t this the exact issue we were trying to solve when we expanded pipeline use in the Bakken?
The oil and gas industry is scrambling to recover from the downturn in prices in the midst of a global pandemic, and DAPL is more critical than ever in getting North Dakota-produced crude to market. This blatant political attempt to negatively influence the energy industry will most certainly hinder restarting crude production from shut-in wells and could lead to even more wells halting production altogether.
Regulatory and legal certainty are vital if our oil and gas industry is to continue to invest into the US economy, building strong communities and strong families with good paying careers like those here in North Dakota. DAPL helped establish America as a net energy exporter and solidified the United States’ energy independence, but short-sided, political rulings like the recent DAPL shutdown order will be felt long into the future.
