Railroad Takeaway Capacity in the Bakken -- One Word: Amazing

Link to InsideClimate News/Dickinson Press.

Datapoints:

• rail capacity in the Bakken: up 55 percent in June with addition of two new loading facilities
• Dore: jump from 10,000 to 60,000 bopd (Musket Corp)
• Rangeland/Epping: 120,000 bopd
• 17 rail/oil terminals built since 2008
• current rail/oil capacity: 470,000 bopd
• possibly could reach 710,000 bopd by end of the year

Folks may want to reflect on this. I suggested that producers may be choking back on their productivity if there is a lack of takeaway capacity. As takeaway capacity is increased, production should increase. I mentioned that to someone, and his immediate response was that production will increase when the price of oil gets back to $100.

I think we will be quite surprised a year from now with production numbers coming out of the Bakken.