Decline And Fall Of Bakken CBR To The East Coast, Part 5 -- RBN Energy -- March 14, 2016

Active rigs:

	3/14/2016	03/14/2015	03/14/2014	03/14/2013	03/14/2012
Active Rigs	32	112	191	187	203

RBN Energy: the decline and fall of East Coast crude by rail.

If East Coast refiners bought their crude at the wellhead in North Dakota during February 2016 they would have paid average prices of about $4.90/Bbl below U.S. Benchmark West Texas Intermediate (WTI) at Cushing, OK – which works out at about $26.25/Bbl (price estimates from Genscape).

If they shipped that crude by rail to refineries in Philadelphia, PA on the East Coast they would have paid about $14/Bbl rail freight - meaning the delivered cost of crude would be $26.25 + $14 or $40.25/Bbl. Alternatively they could have simply imported Bakken equivalent light sweet crude priced close to international benchmark Brent for an average $34/Bbl – saving a minimum of $6.25/Bbl. Today we describe how these economics have had a detrimental impact on crude-by-rail (CBR) shipments to the East Coast.

This is pretty cool, google: cbr oil Bakken blog. 9,220 hits. This blog has top two spots followed by Bakkenblog.com. Even Sven's Bakken Blog shows up high on the list (second page).