Tesoro Corp said Friday it plans to expand crude supply to its refinery in Anacortes, Washington, from the Bakken shale prospect in North Dakota, helping to divert some of the glut of crude oil at Cushing, Oklahoma.Data points:
- Tesoro will increase light sweet crude oil shipped via railcar to 30,000 bpd, vs current 2,000 bpd
- Bakken crude will replace declining Alaska North Slope production
- Anacortes refinery: 120,000 bpd refinery
- Tesoro will build loading and unloading facilities for daily shipments
- Cost: $50 million
- Time line: 9 - 12 month; once company gets permits
- Tesoro with long-term agreement to use Rangeland Energy's crude oil loading facility in Williams Co.
- This oil loading facility has a direct connection with Rangeland's High Plains crude oil gathering system
- Will decompress oversupply issues at Cushing
Tesoro's latest move will help it expand supply to its refinery with a cheaper feedstock because of its advantageous logistical position in the Bakken, according to Greg Goff, the company's chief executive officer.In addition, Tesoro has recently announced a $35 million plan to expand the capacity of its 58,000-bpd Mandan/Bismarck, North Dakota, refinery.
Most interesting comment in the story: the writer uses the number "3.6 billion barrels of technically recoverable oil resources" in the Bakken prospect. Oilmen in the Bakken estimate the number much larger, and based on prices paid/mineral acre, my hunch is that the number far exceeds 3.6 billion barrels of recoverable oil.
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