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Saturday, May 8, 2010

Update on Rail Shipments of Oil

EOG is currently running two 100-unit BNSF trains from Stanley, ND, to Stroud,OK, every week. Each unit train can carry 65,000 barrels of crude oil; each tanker car holds 650 barrels of crude oil.

One unit train can be loaded in one-half day in the covered facility in Stanley. The facility has 14 automated loading arms arranged on a 1.5 oval circuit.

A round trip from Stanley to Stroud is over 2000 miles and takes eight (8) days.

The oil is shipped by a 17-mile pipeline from Stroud to Cushing,OK. The pipeline was built by EOG.

According to an industry spokesperson, a ballpark figure to ship oil by rail is $9 - $12 a barrel vs $5 - $7 per barrel by pipeline. The differential for 65,000 barrels could be as much as $450,000.

Meanwhile, Nustar Energy LLC continues to look for drillers/suppliers to ship oil from Dore, ND, to St James, Louisiana. Whether the recent oil spill in the gulf will interfere significantly with sea-going tanker off-loading of oil in Louisiana is still open to question.

Information for this post was obtained from several sources including the "Oil Patch Hotline" available by subscription with occasional posts at the Bakken Blog.

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