Nick Snow
Washington Editor

WASHINGTON, DC, Sept. 4 -- North Dakota crude oil production and imports from Canada exceed current pipeline capacity in the region, Federal Energy Regulatory Commission Chairman Joseph H. Kelliher told a US Senate subcommittee Sept. 3.

"Both domestic and Canadian crude oil production are increasing, exacerbating the competition for limited pipeline capacity. There have been additions to pipeline takeaway capacity in the region, not enough to limit constraints or accommodate future increases," he told the Senate Appropriations Committee's Energy and Water Subcommittee at a field hearing in Bismarck, ND.

FERC supports energy infrastructure development and has participated as a member of a crude oil market infrastructure task force that the Interstate Oil and Gas Compact Commission initially convened in 2006 to investigate Rocky Mountain crude oil market dynamics, Kelliher continued. "However, the parties themselves must resolve who will commit to support the development of new infrastructure and who is willing to pay for it," he said.