What happened
Ten years ago, thousands of protesters gathered in North Dakota to stop the Dakota Access Pipeline. Despite their efforts, the pipeline is now operational, with a capacity to transport up to 750,000 barrels of oil per day. In contrast, California has lost significant refining capacity, with two major refineries ceasing operations in 2025 and 2026, representing 17% of the state's refining capacity.
The U.S. Energy Information Administration has warned that the closures will likely increase fuel-price volatility across the West Coast, as California has limited connections to major refining hubs on the Gulf Coast. The state may need to rely on imports from Asia, which can be affected by global market conditions and shipping disruptions.
The Standing Rock and California cases highlight the importance of infrastructure planning and permitting. The Dakota Access Pipeline's operation demonstrates how infrastructure review can impose conditions while still allowing a project to operate. In California, the loss of refining capacity underscores the need for policymakers to create a stable and predictable framework for energy infrastructure development.
The U.S. Army Corps of Engineers granted an easement for the Dakota Access Pipeline to continue operating under federal conditions. The pipeline is part of the Bakken Pipeline system, which transports crude oil from North Dakota to Illinois and other markets. The system's capacity and the pipeline's operation have significant implications for the energy market and consumers.
