Bloomberg is reporting:
BNSF Railway Co., the carrier owned
by Warren Buffett’s Berkshire Hathaway Inc., is blocking some
shippers from adding tank cars to its system in a bid to prevent
a worsening of the gridlock that sparked regulators’ ire.
BNSF, which has come under scrutiny this year from the U.S.
Surface Transportation Board over late grain deliveries, has
told some oil shippers its network can’t accommodate more tank
cars, said Mike Trevino, a company spokesman. In June, BNSF and
Canadian Pacific Railway Ltd. were ordered by the board to
report plans for resolving the service disruptions.
While BNSF has said it’s spending $5 billion this year to
add workers, rail cars and expand track, Berkshire acknowledged
in a filing last week that the railroad’s service is still
“well below” its standards. Compounding the problem is the
prospect of a record soybean and corn crop in the U.S., which
will put additional pressure on railroads.
The tea leaves suggest Bakken production will drop below 1 million bopd by the end of the year (remember, we won't know the December, 2014, production until mid-February, 2015). The numbers coming out in a few days will be for the month of September, 2014.
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