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Safety, Shale, Midstream Construction Discussed At Pipeline Opportunities Conference
“Despite the challenges and risks of doing business in the Bakken, there really is no other play we think is better. It is driven by crude oil prices which seem to be holding up very nicely and we’re very pleased to be here with the extensive systems and resources that we have,” Scharf said.
Spectra Energy’s Business Director Greg Crisp described his company’s plans for pipeline construction over the last few years and into the future. After noting that the period 2007-2010 was one of phenomenal growth for his company, Crisp said that since 2007, $4 billion had been spent on capital expansion projects in North America.
He said, “That equates to about $1 billion a year and over the next five years we plan to spend an additional $5 billion, keeping up the pace of our $1 billion per year investment through 2015.”
In discussing investments totaling $3.7 billion in expansions under execution, Crisp shared the accompanying slide that listed 10 projects with in-service dates from 2011–2013.
He indicated that to maintain its $1 billion per year investment, the 10 strategic expansions shown here offered growth opportunities and a continuation of that type investment through 2015.
Crisp noted that a big focus of his company’s spending program was in the Northeast where three pipeline projects totaling $1.8 billion are under way: The TEMAX/Time II, TEAM 2012 and the New Jersey/New York Expansion.
As to what’s ahead, the Spectra executive said a couple of things were in place from the Marcellus Shale standpoint and the company is looking into construction of an ethane pipeline project from the Northeast back to the Gulf Coast and recently completed an open season to expand the Algonquin Pipeline.
Also in the session, DCP Midstream LLC’s Richard Cargile, president, Southern Business Unit, overviewed his company’s spending and growth plans.
Cargile started by noting that DCP Midstream had a good foot print in every one of the nation’s shale plays except the Bakken and Marcellus. “That includes the Eagle Ford Shale in South Texas,” he said. “Because of our diverse footprint and when gas prices were at $10+ per MMBtu there was a lot of activity in the Barnett and Haynesville Shale plays and we’ve benefitted from that. Now that gas prices are down to $3 to $4 per MMBtu and oil is $100 or more a barrel, everyone is chasing the oil shale in the Eagle Ford and Avalon, which has been beneficial for us as well.”