WASHINGTON, April 10 (UPI) -- The potential for funding for pipeline safety will help ensure the infrastructure is in place to support U.S. energy trajectory, a North Dakota senator said.
"As we work towards building a comprehensive 'all-of-the-above' energy plan for our country, it's important to ensure that we build the right kind of infrastructure to support our energy needs, now and into the future," U.S. Sen. John Hoeven, R-N.D., said in a statement.
North Dakota is the No. 2 oil producer in the nation. The rate of growth in the state's Bakken shale reserve basin is more than existing pipeline infrastructure can handle, forcing many in the industry to turn to rail as an alternate transit method.
North Dakota Gov. Jack Dalrymple said last month rail traffic may drop off once new pipeline infrastructure comes online for the state at the heart of the shale oil boom. Three pipelines -- Sandpiper, Dakota Access and Upland -- should be in service by 2018 and provide 895,000 barrels per day in new capacity.
Hoeven said Thursday the federal Pipeline and Hazardous Materials Safety Administration was offering $2 million to help fund university research in pipeline safety.
"We must ensure that our infrastructure is reliable, safe and efficient, and this grant will enable universities to do the innovative research that will do just that," he said.
More than 90 percent of the state's oil production comes from Bakken shale. In January, oil production was 1.19 million barrels per day, a 3 percent decline from the previous month. The state's all-time high was around 2 million bpd, reached late last year.
