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Saturday, February 9, 2013

Crude-By-Rail -- A Random Note

Comment/reply at recent Mike Filloon article on the Bakken:

Here's the comment:
Do you know much about the rail services in the region? I'm wondering if UNP or KSU (or CNI or CP) stand to benefit the most. I suppose this is mostly a short-term situation for the rails, but it would be interesting to see if any new rail is being laid, as well. Personally, I don't see this new crude going away anytime soon... 
And Mike's reply:
I am not real sure which stands to benefit the most, but I do know [crude-by-rail] is not a short term situation. Midstream companies wont put in pipelines until they know they have enough production to fill it. I believe that the rails will continue this for several years at least, but a more likely situation will be at least a decade. This only holds true if WTI trades at a decent discount to Brent which I also believe will continue. 

2 comments:

  1. Midstream CBR.

    From pad to town.


    Yep.

    Anon 1

    ReplyDelete
    Replies
    1. It will be an interesting phenomenon to follow.

      Delete

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