Bakken pipeline a bad bet for Iowa

To the editor:

Arguments about climate change, environmental risk and property rights aside, the business case for the Bakken pipeline traversing Iowa has fallen apart. Oil at about $45 a barrel will not allow North Dakota producers to both recover their costs and repay their debts - witness the recent spike in bankruptcies among Bakken producers, as reported by the Bismarck Tribune. Nor do many analysts expect oil prices to regain what they've lost any time soon. World production remains high, with OPEC countries unable to agree to production cuts at their recent summit. Stockpiles are at glut level, with some suppliers parking oil in tankers offshore because storage on land is getting harder to find. And the world economy is slowing, with demand from China down from year-ago levels.

Dakota Access, LLC and its investors are betting oil prices rise to a level that makes Bakken production profitable. But that's not a bet the Iowa Utilities Board has any business being a party to. Here's an idea for the board: Table the pipeline request and tell Dakota Access to come back when oil reaches $100 and stays there for a sustained period. Current conditions don't warrant building the pipeline.

Derek Maurer

Iowa City