by gokeefe
One of the lesser known facts about the Bakken oil formation currently being drilled in North Dakota is its relative isolation from the national pipeline network has necessitated the wide use of oil tank cars for bulk crude shipments within the U.S. in mass quantities for the first time in perhaps decades.
Here is an example from a recent news article:
There have been some major developments in the past 60 days, including the opening of a major new rail shipping terminal (100,000 bpd/train capacity).
Here is an example from a recent news article:
Much flutter has focused on the Keystone XL pipeline over the last year in eastern Montana, particularly over the relief the Baker on-ramp could provide to moving crude from the Mondak region into the Market. The last month has many on edge about whether that will happen so the question comes to mind “what if it doesn't?” Sunoco Logistics may have at least a partial answer for the region.I'm opening this thread for discussion of the Bakken Crude Oil Rail shipments and their overall effect on energy prices, with potential for follow on discussion of macro economics and effects on national rail shipping volumes.
After just over a month of regional prospecting, Sunoco Logistics says they are now ready to ship MonDak crude for processing on the east coast. The details are not yet complete, but the company is looking at shipping primarily to their Eagle Point facility which is near their only company-owned refinery in Philadelphia, Pennsylvania and possibly to ConocoPhillip's Bayway Refinery. They are in talks now with additional companies that could double that amount.
In fire-line style, they hope to move truck to rail starting with around 25 rail cars a day beginning in January and then grow that operation to 60 rail cars per day.The original plan is to deliver about 20,000 b/d of Bakken crude in about 60 rail cars or about 39,000 bbl in two days. The company plans to reach that target by gradually building up to it.. The rail delivery could reach a maximum capacity of 70,000 b/d in the future, depending on the Mondak crude demand in the northeastern corner of the country. Sunoco Logistics is still in discussions with potential customers for this delivery.
There have been some major developments in the past 60 days, including the opening of a major new rail shipping terminal (100,000 bpd/train capacity).
gokeefe