What’s happening with Keron oil?
The U.S. has announced it will begin a $50 million project to develop a new oil field in South Dakota.
The project, dubbed Keron, will produce nearly 3 million barrels of oil per day, according to The Hill.
The US is the largest producer of oil in the world and it’s one of the main reasons why South Dakota has been able to stay economically viable.
“The Keron project will be an important contributor to our ability to continue to produce oil in South America,” said Vice President Mike Pence during a press conference announcing the project.
The announcement came after President Donald Trump signed an executive order in May that extended the country’s oil production and exports.
The Keron drilling project has been a controversial issue for many South Dakotans, as it could increase the pressure on the state’s oil companies to make major concessions to protect their bottom line.
South Dakota’s largest oil company, Continental Resources, has said it is not willing to make the concessions necessary to get the project going.
According to The New York Times, the Keron development will not impact the state if the oil is produced within 30 years, which means it would be a major blow to the state as it relies on the oil for energy to pay for its public schools, roads, hospitals, and other services.
“The state will be able to continue operating, and it will be possible to do that even without Keron,” said Dakota Gov.
Kyle Pincus, who has been pushing for more energy independence for the state.