Role of Rail in Shipping Oil Out of the Bakken

This is a nice overview / human interest story regarding the role rail plays in shipping oil out of the Bakken.
Bakken crude on its way to Cushing

Statistics:

• Rail facilities shipping 30,000 bbls/day (June, 2010)
• Capability: 125,000 bbls/day

In early 2010, analysts felt ND could produce over 350,000 bbls/day by 2015 -- that's five years from now! In fact, we are almost there now (310,000 bbls in July) -- three to four years earlier than expected.

There are oil loading facilities for rail at Stanley (EOG, 65,000 bbls/day); Stampede, ND (4,000 bbls/day); Minot, Tioga, New Town, Dore, Donnybrook and Ross. Another site is being proposed for Williston.

Incredible story.

Cost of shipping oil:

• Cost to ship by pipeline: $5 - $7/bbl
• Cost to ship by rail: $6 - $10/bbl

Updates:

February 4, 2011: new terminal to be built at Tioga, North Dakota