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.