CenterPoint Energy, XTO Energy sign crude-gathering pact in Bakken shale
BY ANGEL GONZALEZ
HOUSTON -- ExxonMobil unit XTO Energy agreed to gather Bakken shale oil production into a new crude oil gathering system being built by a subsidiary of CenterPoint Energy, the companies said Tuesday.
The agreement is the first secured for the proposed pipeline, which will have a capacity to gather 19,500 barrels per day. It underscores the rapid buildup of infrastructure taking place in the shale plays that are underpinning a big boost in U.S. oil output.
The Bakken shale is located in North Dakota, and has turned the state into the second-largest producer of crude after Texas. Limited infrastructure in the region has led many producers there to ship their oil via rail, and the bottleneck has produced a discount in the price of crude extracted in the region.
Dow Jones Newswires