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Thursday, September 27, 2012

Random Note on Cost of Shipping By Pipeline

This is an interesting story on numerous levels.

Data points:
  • Mobil Pipeline, a unit of Exxon Mobil Corp reversed its Pegasus pipeline to carry crude - mostly Canadian - from Illinois to the U.S. Gulf
  • Mobil requested permission to set rates rather than letting market set rates
  • series of FERC reversals; bottom line -- FERC agrees with Mobil
  • Mobil raises rate (tariff) from $1.57 to $5.09/bbl
  • the case has implications for others, particularly Delta Airlines moving crude oil to northeast

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