The Bakken formation's success has hinged on one thing: takeaway capacity. This part of the country has gone from a marginal player in the oil space to delivering nearly 1 million barrels per day, and industry leaders like Continental Resources (NYSE:CLR) see that production number soaring as high as 2 million barrels per day. Considering what it would take to get this region to that kind of production, it seems bizarre that Koch Industries has decided to not build a pipeline from North Dakota to Illinois. 

There are very limited reasons why Koch Industries didn't build this pipeline, one of them being a lack of interest by the producers. Tune into the video below to find out why Bakken players like Continental and Oasis Petroleum (NYSE:OAS), and refiners like Phillips 66 (NYSE:PSX), would prefer to not use a pipeline and why it makes better business sense despite the risks associated with rail. 

Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at under the handle TMFDirtyBird, on Google +, or on Twitter @TylerCroweFool.

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