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Delta and United boost service to North Dakota to capitalise on the state’s oil boom

Analysis

US major carriers Delta and United are capping off expansion to the region of western North Dakota in Jun-2013 when they introduce service to Dickinson, a destination which has suddenly become attractive as the energy industry is driving a thriving economy in the region. Both carriers introduced flights to nearby Williston, North Dakota in late 2012 to take advantage of strengthening traffic patterns triggered by the extraction and production of crude from the Bakken Shale formation, which is a cheaper option for US refineries than Brent crude sourced from the North Sea.

In addition to capitalising on increased demand for air travel to western North Dakota, Delta hopes to benefit from the improved economics of Bakken crude as the carrier recently received its first shipment of oil from the Bakken Shale at its Trainer refinery near Philadelphia, Pennsylvania.

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