Why is Koch Industries Saying No to Building a Bakken Crude Pipeline?

The Bakken formation's success has hinged on one thing: takeaway capacity. This part of the country has gone from a marginal player in the oil space to delivering nearly 1 million barrels per day, and industry leaders like Continental Resources see that production number soaring as high as 2 million barrels per day. Considering what it would take to get this region to that kind of production, it seems bizarre that Koch Industries has decided to not build a pipeline from North Dakota to Illinois. 

There are very limited reasons why Koch Industries didn't build this pipeline, one of them being a lack of interest by the producers. Tune into the video below to find out why Bakken players like Continental and Oasis Petroleum , and refiners like Phillips 66 , would prefer to not use a pipeline and why it makes better business sense despite the risks associated with rail. 

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The article Why is Koch Industries Saying No to Building a Bakken Crude Pipeline? originally appeared on Fool.com.

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter @TylerCroweFool. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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