Pipelines Impact Local Economy

Pipelines bring most oil and gas to the Northland

Earlier this week, the army corps of engineers denied a permit for the construction of a key section of the Dakota Access Pipeline.

That came after protests against the pipeline sparked a national conversation about the safety of oil transportation.

Tonight, FOX 21’s Andrew Kirov speaks with a local fuel company about the repercussions of the controversy.

The Dakota Access Pipeline won’t bring oil to our region, but much of the fuel in the Northland arrives here through other pipelines.

Widely considered by industry experts as the most cost–effective way to transport oil and natural gas, pipelines are an important part of the energy infrastructure.

They allow fuel prices to be lower than if these products were transported by rail or truck.

“If it wasn’t for pipelines, we would be going to possibly the twin cities or even further to secure our fuel and gasoline supply for this market. It is pipelines that bring it right into Superior, Wisconsin to the Calumet refinery where a majority of the product for this market comes from,” says Ryan Gunderson, President of Superior Fuel Company.

Pipelines can pose an environmental risk because of the possibility of leaks, which can impact wildlife and drinking water, but leaks and spills can also occur in other types of oil and gas transportation.

“Obviously these pipeline companies don’t want there to be leaks. When there’s a leak it costs them millions and millions of dollars where they work very diligently to not have issues, to not have spills, to not have leaks. They don’t want leaks just as much as everybody else doesn’t want leaks,” says Gunderson.

Gunderson doesn’t believe any decisions made about the Dakota Access Pipeline will affect local business for fuel prices, but he sees a large impact from other pipelines on our local economy.

Categories: Business-imported, Environment-imported, News-imported, Video