This about says it all:
The Calgary-based railway has seen a faster-than-expected increase in the demand for moving oil on rail, and in December said it would build a facility in Estevan to ship from the prolific Bakken formation.And,
The carrier has seen the number of carloads from the North Dakota Bakken increase from 500 to 13,000 over the past two years, with expectations that could climb to 70,000 down the road, with projected revenue of $140 million.The most interesting observation I can make: NDIC and corporate presentations continue to say that takeaway capacity meets demand in the Bakken. This article suggests otherwise.
Last fall it reported its carloads from the Bakken were up 50 per cent over what was anticipated in June.
As pipeline capacity is stretched, rail becomes an increasingly viable option.
When I posted on going to see the CP Christmas train here in Minneapolis I researched the CP/ old Soo line tracks that seem to run from Minot with track sharing west. While driving around I have noticed several CP powered trains of oil tank cars passing through Minneapolis CP yards.
ReplyDeleteTry googling. It is fun and easy!
http://fourfiftygas.blogspot.com/2011/12/i-saw-cp-rail-usa-holiday-train-sunday.html
ReplyDeletei wonder how long it takes before gas pipelines get modded and permitted for crude and they revert to flaring. Just a thought
ReplyDeleteI don't think ONEOK is going to mothball three multi-million dollar cryo plants. The operators have no choice but to pipe natural gas; after one year they have to shut down production if they are still flaring. And I believe production is limited while flaring. The operators will benefit from piping this natural gas. Takeaway capacity is stretched -- not failing.
DeleteChanging natural gas pipeline to oil won't occur even if it was technoilogically feasable. First off, a natuural gas leak/fire has low enviormental effects and natural gas is really cheap so people won't want to give it up. Around half of the USA households use natural gas and they appear to like the resurgance of cheap energy. In my case my heating bill for January was $70. No way I will prefer paying $300 to "save the planet", make Al Gore a billionaire or whatever reason.
DeleteEven if I wasn't a greedy capitalist being heated with natural gas, this means less pollution at one quarter the cost. What is not to like about this example of being "green"?