Tuesday, June 19, 2012

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.

2 comments:

  1. Not certain how dependent these numbers are on rolling stock (tank car)availability. One solution being tried is rail to the Illinois River and then barge to the Gulf Coast. That should double rail car availability.

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