"Statoil Using Rails to Ease Bottleneck"
Again, a fairly long article, about a sixth of the page devoted to a North Dakota Bakken story.
Regular readers know the story: not enough pipeline takeaway capacity. Statoil (bought BEXP) will lease more than 1,000 railroad cars to "overcome pipeline bottlenecks that plague the booming oil-producing region."
The writer is a bit behind the times, though, talking about the Bakken -- still talking about 639,000 bopd in May, when the most recent figures are 660,000 bopd reported in June.
- starting in September: Statoil will have long-term rail leases to ship 45,000 bopd
- more than enough to handle ALL of BEXP's production coming out of North Dakota
- no price disclosed; carrier not disclosed
- 14 to 15 days for a round trip from the Bakken to the terminal
- discounts, due to bottlenecks, range from $5 to $20/barrel
- Phillips 66 recently bought 2,000 rail cars for same purpose
- Tesoro will ship Bakken oil to its Anacortes, WA, refinery by train starting in September
- Marathon ships about 14% of its Bakken oil by rail
- Statoil produced about 100,000 boepd in 2011; plans to move that to 500,000 by 2020 (North American production which includes Bakken, Eagle Ford, Marcellus
**********************RBN Energy: more on NGL distribution