Future of Dakota Access pipeline uncertain as Biden presidency looms

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The election of Democrat Joseph Biden could create more headaches for the Dakota Access Pipeline's (DAPL) owners, who are already embroiled in ...

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The election of Democrat Joseph Biden could create more headaches for the Dakota Access Pipeline's owners, who are already embroiled in legal battles to keep the main conduit for flowing oil out of North Dakota running.

The US$3.8 billion DAPL ships about 40per cent of the crude oil produced from the Bakken shale region in North Dakota to refiners in the Midwest and exporters in the U.S. Gulf. Without the 557,000-barrel-per-day line, getting oil out of the area, which has about 1 million bpd of output, would be much more difficult left to smaller existing pipelines and rail.

President Donald Trump's predecessor, Barack Obama, blocked a permit that would have allowed construction under South Dakota's Lake Oahe, a critical water source for the Standing Rock Sioux tribe. Biden, who defeated incumbent Trump in last week's election, could bring in new Army Corps leadership. That could increase the chances that the line would be shut. For now, the Corps has allowed DAPL to operate on federal land without a permit.Executives at Energy Transfer do not expect the line to be shut.

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