I posted this "for investors only" because that's the audience
the article targets. However, there is quite a bit on the Bakken and the Bakken Crude Oil Express Pipeline.
In what had to be shocking to all but industry insiders, Oneok
Partners announced a few weeks back that it would not proceed with the
Bakken Crude Express pipeline that would send crude from the Bakken to
the oil hub in Cushing, OK. The pipeline was scheduled to begin
construction in early 2014 and be completed by mid-2015.
Considering
producers had long complained about the lack of takeaway capacity in
North Dakota hurting pricing, it was very shocking that the pipeline
didn't attract enough commitments.
Ironically, on the way to
finalizing contracts, the rails have taken over in North Dakota as the
most attractive alternative. Rail lines such as BNSF now have enough
capacity to handle the daily production and the ability to ship the
product to the coasts where it is needed more. Instead of shipping
directly into a disadvantaged hub where oil would again become
congested, a large percentage can now be sent to Phillips 66 refineries on the East Coast, thereby skipping the middleman.
By the way, the linked article above links to another
SeekingAlpha.com article:
Buffett's railroad beats ONEOK's pipeline.
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