Standing Rock & the Fight to Keep Fossil Fuels in the Ground

What has happened with the renegotiation of the oil shippers’ DAPL contracts? The carbon calculation has changed since the pipeline deal was done.

  • Oil prices are at half what they were in 2014, when Energy Transfer Partners signed contracts on oil shipments. The high-priced contracts are a good deal for Energy Transfer Partners now that oil prices have sunk. But they’re not such a good deal for the nine major shippers, who may want to renegotiate now that the pipeline will miss the contract deadline of Jan. 1, 2017, according to a detailed study of the pipeline’s finances. “The long-term transportation contracts give shippers a right to terminate their commitments if DAPL is not in full service per the contract deadline,” ETP said in legal filings.
  • Production from North Dakota’s Bakken shale oil field is declining; region area has a glut of transport infrastructure. Such energy realities are why spending on new renewable energy infrastructure is projected to reach $6 trillion by 2035, compared to $2.75 trillion on infrastructure for conventional sources. Global financing for new renewables projects has already surpassed financing for new coal and natural gas capacity.
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