The price of oil from North Dakota has dropped below zero

The price of oil from North Dakota has dropped below zero

LONDON, January 18. The price of oil from North Dakota dropped below freezing – at least one potential buyer of the refinery Flint Hills Resources asks that he be paid $0.5 per “buy” this cheap grade of crude oil with high sulfur content.

On it informs Agency Bloomberg.

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In the beginning of 2015 for a barrel of oil North Dakota Sour gave $13,5, and in January 2014 the price of oil was $47.6 per barrel.

The oil boom in the least visited in North Dakota occurred in 2012-2013. So, the city of Watford city has experienced in 2012 with explosive growth. Extraction was performed on the largest shale oil field and gas “Bakken”, where Exxon Mobile Corp, Continental Resources Inc and other companies used drilling methods using hydraulic fracturing.

Through this technology, oil production in North Dakota increased six-fold, and the state stood level on this indicator with a country-OPEC member Qatar. However, production of this oil is extremely energy intensive.

As announced in the December 2015 Executive Director, International energy Agency, Fatih Birol, if the oil price will stay below $50 per barrel, we can expect in 2016 sharp reduction of volumes of shale oil in the USA and lower activity in the U.S. oil market.

Incidents in North Dakota

In the fall of 2013, the Agency AP reported that the state in the period of January 2012, there were 300 cases of oil spill, which the Supervisory authorities have not said publicly.

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In total, according to the Agency, for a specified period in the oil fields and oil pipelines took place about 750 of the incidents, which occurred without informing the population, including nearly 300 spills. The total volume of oil spilled amounted to about 1.6 thousand barrels in 2012 and more than 23 thousand barrels in 2013.

The largest incident occurred in October 2013 – in the accident on the pipeline spilled about 20,6 thousand barrels of oil. The state government and representatives of the company that owns the pipeline did not disclose the incident for nearly two weeks, until he received a direct request from journalists about the spill told stumbled on a local farmer.

About the method of production

Fracturing the formation of cracks in the layers of oil or gas under the action supplied to them under pressure of the working fluid. The composition of this mixture includes chemicals which according to many environmentalists, leads to serious environmental pollution.

From high to collapse: the dynamics of oil prices since 2000


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