Part II, January 22, 2013
Filled with data points, for example:
Railroad transportation of Bakken crude is increasing. EOG Resources uses virtually no pipeline capacity for its Bakken production. This is sent to St. James for LLS pricing. Tesoro is doing the same to its Anacortez refinery, and is planning to start railing oil to California. Phillips 66 signed a deal for Bakken crude transported to its Bayway refinery on the east coast. Look for further rail capacity additions coming on line over the next couple of years. This should open pipes for other Bakken players.
Yep, that railroad use must be why, again, EOG blew away Brigham in price per barrel for my most current checks. These were the November numbers per barrel;
ReplyDeleteEOG $105
Brigham $81
Question......why doesn't Brigham just sell their oil to EOG for $90? If not that, why not rent, lease, or buy some trains cars? How long does it take Brigham to see this? I mean these wells are in the same County, Williams, and more than a $20 spread per barrel?!
(can you tell which well I have a much greater interest in?)
And, in the bigger picture, your numbers show why the WTI price seen on the TV crawler is not always relevant to the Bakken.
DeleteBy the way, I have a stand-alone post on EOG: the railroad was just one of many things about EOG that has impressed me.
http://www.milliondollarwayblog.com/2013/01/a-huge-thank-you-to-reader-alerting-me.html
I also maintain that a lot of "seed corn" is being planted by the Bakken-centric operators.