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Will the Tesoro Pipeline Through Utah Be Postponed?

Oil prices plunged another 4% today to $56 per barrel. Yesterday we read about how that is causing US shale oil to become unprofitable to produce. Today the BBC reported that the UK’s North Sea Oil industry is in a state of crisis.

That’s leaves us wondering how lower prices will impact Tesoro’s proposed pipeline through Summit County. It appears waxy crude, the variety that is supposed to flow through this pipeline, costs more to produce than standard oil. So, one would think that if they will produce less oil in general due to lower prices… they would produce and ship and LOT less of oil that requires more work (and cost).

If the lower oil price trend continues, what are the chances that Tesoro will postpone the pipeline? While we are just speculating…. we’d say pretty good.


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