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Video: Horizontal Directional Drilling Explained

Anyone closely following the construction of the Dakota Access Pipeline has likely heard or read about the use of horizontal directional drilling or HDD. While not an everyday term, HDD technology has arguably transformed many facets of the construction industry since its inception in the early 1900s.

HDD is used to install underground pipe when trenching or excavating is not practical. By using a surface-launched steerable drill bit, construction crews are able to insert pipe deep beneath the surface without disturbing the surrounding landscape. Major infrastructure projects like Dakota Access commonly rely on HDD to cross roads, rivers, and other environmental or culturally sensitive areas. HDD is also frequently used in urban areas for developing subsurface utilities like water and sewer.

Michels Corporation—one of the lead contractors for the Dakota Access Pipeline—has put together an excellent video detailing both the HDD process and its applications.

Three Ways American Energy Is Saving You Money This Summer

Surging domestic oil and gas production has greatly reshaped the global energy market both at home and aboard. Here are three ways American energy independence helping to save you money this summer.

Gas Prices: Gas prices in the U.S. are at their lowest point in more than a decade, down 20 percent in just the past year and in stark contrast to the near $4 average experienced during the 2011 crisis in Libya. According to AAA, the national average retail price for a gallon of regular unleaded gasoline fell to just $2.22 last week. Furthermore, the national motor group said that about a quarter of gas stations are posting prices below the $2 mark. Drivers across the country are saving big thanks to these low prices with CNN Money reporting earlier this year that low the typical American household upwards of $1,000 in 2016.

Groceries: Food prices are still rising over all, but low energy costs are leading them to climb at rates well below the historical average. A report by the U.S. Department of Agriculture found that prices for food at home increased by 1.2 percent in 2015, less than half the 20-year average of 2.5 percent. Delivering food to supermarket shelves requires a vest transportation network across land, air, and sea. Whether it be an airplane, 18 wheeler, ocean-going freighter, they all benefit from cheap oil.

Airfare: Fuel is the single greatest expense facing the airline industry, but thanks in part to American energy production, those costs have been greatly reduced. Cheaper operating costs for airlines translates into increased savings for consumers at the ticket counter. A recent analysis by Hopper, an award-winning mobile flight-booking app, found that the fall in oil prices is “contributing to noticeably lower travel costs.”

Iowans Get to Work Building the Dakota Access Pipeline

 

Construction of the Dakota Access Pipeline is now well underway in Iowa following a greenlight by the Iowa Utilities Board (IUB) in June. As a result, more than 3,000 new jobs have now been created in communities across the Hawkeye State, including upwards of 450 Operators from Des Moines-based Local 234. Speaking with ABC affiliate WOI-TV earlier this summer, Local 234 Vice President Chad Carter praised the IUB for their decision, saying it would out many hard-working Iowans to work.

The pipeline, which represents a $1.04 billion capital investment in Iowa alone, is expected to generate almost $50 million in additional sales and income taxes during construction. In addition, local economies and small businesses along the four-state route are already benefiting from a surge in new customers that have come to work on the pipeline. Family-owned Scoopz Ice Cream & Eatery in Linton, ND is witnessing these benefits firsthand with record sales on over 46 gallons of ice cream a week. “We’ve just met a lot of really nice, wonderful people from all over the U.S. and it’s just made our first year a huge success and very fulfilling to be a new business owner,” says Cindy Zotti, Scoopz owner.

All that said, the project is still awaiting approval from the U.S. Army Corps of Engineers to cross a mere 3.5 percent of the entire route. Despite having almost 500 days to evaluate Dakota Access’s application, the Army Corps continues to drag their feet in a textbook display of Washington bureaucracy. It is time for the them to follow the lead of four state utility boards and approve this critical investment in our local economies and national energy future.

Pipeline Reduces Odds of Oil Train Derailment

 

The buildout of safe, efficient pipeline infrastructure is redefining how our nation’s domestic energy resources are delivered to critical markets across the nation. A recent article published in the Ottumwa Courier highlighted a growing concern we are all too familiar with – concerns with the safety of oil trains. From the devastating 2013 tank car explosion in Quebec to last month’s oil train derailment in Oregon, it is clear that shipping crude oil resources by rail can be concerning. As noted by the Courier, Iowa is far from immune to these risks with millions of barrels of oil transiting the state’s railways ever year.

Not surprisingly, crude-by-rail shipments top Ottumwa Assistant Fire Chief Mike Craff’s list of concerns involving rail transportation. In an interview with the Courier, Craff, who is also the vice president of the Iowa State Hazmat Task Force, said cleaning up a derailment involving crude would a mess. “If one of those catches on fire we pretty much have to let it burn out,” he said.

Adding to concerns is an April 2016 report by the Iowa Department of Transportation that found a state-wide lack of preparedness for a derailment involving crude oil or ethanol.

In Iowa, the Dakota Access Pipeline will transport over 450,000 barrels of oil per day or nearly half of the Bakken’s current production. The pipeline will significantly reduce crude-by-rail traffic in our region, meaning the odds of a derailment involving oil are also drastically cut.

Claims Pipeline Will Reduce Property Values Are Unsupported

A recent letter to the editor published in the Des Moines Register, argues that the Dakota Access Pipeline would “drastically reduce property values.” Not surprisingly, the author of this piece makes no effort to employ any actual data to support this groundless claim (hint: likely because it does not exist). The fact of the matter is that it only takes a quick Google search to reveal a fair amount of research capable of easily disproving this claim.

In fact, a study commissioned by the non-partisan Pipeline Safety Trust and published in the Journal of Real Estate Literature found that, “there is no systematic evidence, based on actual sales data, that proximity to pipelines reduces property values.” Adding to that, a report, “Pipeline Impact to Property Value and Property Insurability,” prepared on behalf of the INGAA Foundation concludes that the presence of pipelines does not affect a property’s insurability, desirability, or the ability to obtain a mortgage.

Furthermore, the author writes that a landowner could be held responsible for any damage caused by the pipeline, despite the fact that Dakota Access has explicitly stated that they are 100% liable.

Sure, it may be fun to lob baseless claims around in the interest of promoting own agenda, but the facts speak for themselves, and in this case, tell a very different story

Celebrate American Energy Independence This 4th of July

 

This 4th of July we have added reason to celebrate America with the landmark achievement of energy independence. After decades of working towards this important goal our nation is now reaping the benefits of domestic energy production.

In the past few years, the United States has surpassed countries like Russia and Saudi Arabia to become the world’s leading oil and natural gas producer. This historic milestone means our country no longer has to rely on foreign, and often hostile, sources to meet its energy needs.

The surge in domestic production has reinvigorated the American economy with an abundant and reliable supply of affordable energy. This energy independence has revived our manufacturing industry, drastically reduced energy costs for homes and small businesses, and reduced our trade deficits.

The American dream is alive and well today thanks to this defining accomplishment and the opportunities it has created.

Midwest Region Experiences Economic Boon from Dakota Access

Communities along the Dakota Access Pipeline route are experiencing an uptick in economic activity as construction of the multibillion dollar project shifts into full gear. Local businesses across the region are benefiting from a surge in new customers that have come to work on the landmark infrastructure project. In total, the project is expected to create upwards of 12,000 new jobs and inject more than $156 million in additional sales and income taxes.

Moody’s Investors Service calls Dakota Access Pipeline a “credit positive” for 18 Iowa counties in its latest Weekly Credit Outlook for Public Finance. “Moody’s Investors Service says the Iowa Utilities Board’s recent approval of construction for the $3.8 billion Bakken oil pipeline is “credit positive” for 18 Iowa counties along the four-state pipeline route. Moody’s provides financial research on bonds issued by commercial and government organizations and is considered one of the Big Three credit rating agencies. In its latest Weekly Credit Outlook for Public Finance, Moody’s says the pipeline will generate new and recurring property tax revenues and will temporarily increase sales taxes.” (Source: Des Moines Register, 6/24/16)

Small-town economies in Southern North Dakota enjoy much needed boost from pipeline construction. Grocer Todd Mulske in Linton says he’s having trouble keeping steaks in the cooler and potato chips on the shelf. He owns the Linton Food Center and like everyone in the area, he has been noticing the new people in town: welders, excavators and pipeline workers of all stripes. Many show up in the store at about 5 to 6 p.m., looking for something to throw on the grill for supper and pack in the lunchbox for the next day’s work. “Right now, we’re trying to keep up,” Mulske said. “The store’s been crazy.” (Source: Bismarck Tribune, 6/11/16)

  • Local campgrounds full because of pipeline construction. Tiffany Heer, owner of Bayside Resort, a busy campground, store and restaurant just a few miles south of the pipeline route, said she’s got 55 pipeline workers living in campers there. Heer said she’s kept some spots available for locals who like to camp near the water and she’s putting in 18-hour days to keep up, putting out food until late and out of bed before sunrise to open the store and restaurant. “I like the energy that’s coming with the pipeline. It’s such a nice thing to see happen to our local community,” she said.” (Source: Bismarck Tribune, 6/11/16)
  • Family-owned ice cream store in Emmons County seeing record sales. “We’ve just met a lot of really nice, wonderful people from all over the U.S. and it’s just made our first year a huge success and very fulfilling to be a new business owner.” (Source: KXMC-TV, 6/24/16)

KXNet.com – Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

Jacksonville mayor welcomes workers, says pipeline will boost city and county revenues.  “Signs welcoming the workers also have been posted by a variety of businesses, including restaurants, said Jacksonville Mayor Andy Ezard, who added that the spending should provide at least a short-term revenue boost for the city of 19,500. “There’s signs around town welcoming them to come in,” said Ezard. “There’s definitely going to be an economic impact on the city and the county, at least for a while.”” (Source: State Journal-Register, 6/11/16)

Hoeven: Pipelines Provide Safe, Efficient Transportation of Energy Products

 

Speaking at a U.S. Senate Energy Committee hearing last week, Senator John Hoeven underscored the importance of upgrading and expanding our nation’s pipeline capacity. Hoeven, a longtime advocate all-of-the-above energy policy, also emphasized the need to remove burdensome regulatory hurdles that too often discourage private investment in pipeline infrastructure.

“Pipelines are a safe and efficient means of transporting oil and gas from where they are produced to where they are consumed,” Hoeven said. “Updating and expanding our pipeline infrastructure means safer communities, better environmental stewardship, more energy production and good paying jobs. Those jobs aren’t just in construction. By making energy more affordable, such infrastructure helps create jobs across industries, especially energy-intensive industries like manufacturing. That is why we need to support policies and pass legislation, like our North American Energy Infrastructure Act and others, to empower investment in this infrastructure.”

Hoeven, who previously served as Governor of North Dakota, relied in part on his own experiences to explain the critical role pipelines play. In North Dakota, he attributed the installation of gathering lines as the key driver behind the state’s drastic reduction in natural gas flaring. According to the U.S. Energy Information Administration, flaring fell from 36 percent in in 2014 to a mere 10 percent in March of this year.

Senator Hoeven has proven to be a reliable, pragmatic leader in the buildout of the nation’s pipeline infrastructure and will no doubt continue to lead as America settles into its newfound role as the world’s leading energy producer

DNR Decision Shows Dakota Access ‘Unanticipated Discoveries’ Plan Works

 

Iowa state officials have lifted a temporary stop-work order that had been issued for the Sioux River Wildlife Management Area following a discovery of previously undocumented cultural artifacts. According to the Des Moines Register, the Iowa Department of Natural Resources (DNR) granted Dakota Access an amendment to its permit after the company proposed to boring underneath the protected area. “The bottom line is that they will go around the area by going underneath it,” said DNR spokesperson Kevin Baskins.

In an email sent last week to DNR Director Chuck Gipp and obtained by the Register, State Archaeologist John Doershuk also expressed satisfaction with the revised plan to avoid the sensitive areas.

State Archaeologist John Doershuk said in an email last week to DNR Director Chuck Gipp that the proposed directional boring construction method is a satisfactory avoidance procedure from an archaeological standpoint that he supports in this case.

The discovery of the archaeological site and subsequent review that has occurred over the past few weeks illustrates that the Unanticipated Discoveries Plan prepared by Dakota Access is an effective framework both in theory and application.

Reaction to IUB Decision Shows Strong Support for Pipeline

A roundup of editorial commentary shows widespread support for the Dakota Access Pipeline following last week’s decision by the Iowa Utilities Board (IUB) to allow work to finally begin.

Writing in the Council Bluffs Daily Nonpareil, MAIN Coalition Chairman Ed Wiederstein thanked the board members who voted in favor of allowing construction to begin on this important infrastructure project. “The Iowa Utilities Board (IUB) recently made their decision to approve construction on this important infrastructure project, so that Iowa can receive the economic benefits that our neighbors have experienced for the past two months,” he wrote.

Similarly, a letter to the editor published in the Newton Daily News by IUOE Local 234 member Will Chedester commended board members Libby Jacobs and Nick Wagner for their supportive votes. Their “leadership reflects the kind of energy policy I hope to see more of in Iowa,” Chedester said.

Echoing both Chedester and Wiederstein was Donald Martinache of Monroe, who reiterated the importance of the project in a Des Moines Register opinion piece. “Regardless of politics, the Dakota Access project represents a major energy infrastructure initiative, one that is overdue and necessary to relieve the stress on our railroads and highways,” he said. Adding that, “Construction of this pipeline will send a signal that energy producers are ready to invest in our nation’s energy security and the energy resources essential to keeping our economy dynamic and growing.”

Despite the fact that construction is now underway in all four states, the U.S. Army Corps of Engineers continues to be the source of a never-ending bureaucratic logjam. “It is critical that the Corps of Engineers approves these permits as soon as possible. Right now, we are all witness to the grinding gears bureaucracy,” said Wiederstein. According to the most recent IUB meeting the Corps was scheduled to release the final outstanding permits today, June 16th, but whether they hold true to their words remains to be seen.