Need for Express crude line at issue

Producers and refiners in the U.S. Rocky Mountain region are taking sides on a proposed pipeline that would move more Canadian crude into the region. The Independent Petroleum Association of Mountain States (Ipams), representing about 400 producers, says oil prices would slide and jobs would be lost because of oil deliveries by the proposed Express Pipeline Ltd. project (see map, OGJ, Sept. 25, p. 47).

Oct. 9, 1995

2 min read

Producers and refiners in the U.S. Rocky Mountain region are taking sides on a proposed pipeline that would move more Canadian crude into the region.

The Independent Petroleum Association of Mountain States (Ipams), representing about 400 producers, says oil prices would slide and jobs would be lost because of oil deliveries by the proposed Express Pipeline Ltd. project (see map, OGJ, Sept. 25, p. 47).

But a refiner in Salt Lake City, Utah, says five refineries in his area need the line because of declining crude oil supplies in the Rocky Mountains. Oil & Gas Journals annual refining report lists five refineries in Salt Lake City and neighboring Woods Cross with combined capacity of 150,500 b/d.

Alberta Energy Co. Ltd. and Trans-Canada PipeLines Ltd., both of Calgary, are sponsors of the proposed 170,000 b/d Express crude line from Hardisty, Alta., to Casper, Wyo. It would connect at Casper with lines to other U.S. markets.

Paul Zecchi, Ipams president, said there is ample crude supply in the Rocky Mountain region to last beyond 2000. He said the region cannot absorb more crude. The association will approach the U.S. Bureau of Land Management to oppose the Express project.

Meanwhile, Rob Garner of Flying J Inc., Salt Lake City, said five refineries there will not survive unless they get additional crude supplies via the Express line. Garner is manager of crude oil supply for a 24,000 b/d refinery operated by Flying J.

The Express project is expected later this year to seek construction permits from Canadas National Energy Board and U.S. regulators.

Express is competing with IPL Energy Inc., Calgary, which plans a 120,000 b/d expansion of its crude oil line to Chicago. Both groups are seeking commitments from Canadian oil producers.