Among everything else discussed in the article about TransCanada carrying Bakken oil in the Keystone pipeline, one is reminded of the cost to ship by rail: $15 - $30 per barrel.
For more on this subject, see this post of a couple days ago.
To give a perspective on things the semi-tanker trucks used to deliver gasoline to stations hold around 7000 gallons or 160 barrels.
A 44 gallon barrel of oil weights 308 pounds at 7 pounds per barrel. A rail tanker car might hold 90 tons or 180,000 pounds of oil. 180,000 divided by 308 equals 585 (rounded) barrels per rail car. A Unit train is 150 cars so a unit train could carry (585 x 150) 87,750 barrels of oil.
My numbers may be a bit "ballpark" but they show how cumbersome and limited rail or truck transport is versus pipeline or ship.
The last time I recall the "rail bridge" used to transport oil was in World War II when German U-boats wreaked havoc on ocean shipping of oil from the Gulf to the Northeastern US.
Your math is excellent. I seem to recall the 100-unit trains would transport 60,000 to 65,000 barrels. The last I heard was EOG was doing this two three times per week. In the planning stages they suggested one train per day.
I'm told the new rail / oil terminal to be built near Tioga will cost $55 million. This is a other indication that the oil industry expects to stick around for awhile in Northm Dakota, unlike other shorter booms.
To give a perspective on things the semi-tanker trucks used to deliver gasoline to stations hold around 7000 gallons or 160 barrels.
ReplyDeleteA 44 gallon barrel of oil weights 308 pounds at 7 pounds per barrel. A rail tanker car might hold 90 tons or 180,000 pounds of oil. 180,000 divided by 308 equals 585 (rounded) barrels per rail car. A Unit train is 150 cars so a unit train could carry (585 x 150) 87,750 barrels of oil.
My numbers may be a bit "ballpark" but they show how cumbersome and limited rail or truck transport is versus pipeline or ship.
The last time I recall the "rail bridge" used to transport oil was in World War II when German U-boats wreaked havoc on ocean shipping of oil from the Gulf to the Northeastern US.
Your math is excellent. I seem to recall the 100-unit trains would transport 60,000 to 65,000 barrels. The last I heard was EOG was doing this two three times per week. In the planning stages they suggested one train per day.
ReplyDeleteI'm told the new rail / oil terminal to be built near Tioga will cost $55 million. This is a other indication that the oil industry expects to stick around for awhile in Northm Dakota, unlike other shorter booms.
Thank you for this analysis
ReplyDeleteYou are very welcome. Thank you for stopping by and commenting.
ReplyDelete