chicagorails SINCE THE WHITE HOUSE CANCELLED THE XL PIPELINE FROM CANADA TO TEXAS ....WHICH MADE NO SENSE THE RAILROAD BNSF WILL HAUL IT. WHICH IS MORE DANGEROUS AND POLLUTES MORE THAN PIPELINE. AND IF A BIG DROUGHT HITS ANY OF THE STATES THE PIPELINE GOES THROUGH THEY COULD CHANGE TO WATER PUMPED FROM THE VAST OCEANS TO AGRICULTURE OR OTHER AFTER DISALTIFCATION OF SALT WATER
SINCE THE WHITE HOUSE CANCELLED THE XL PIPELINE FROM CANADA TO TEXAS ....WHICH MADE NO SENSE THE RAILROAD BNSF WILL HAUL IT. WHICH IS MORE DANGEROUS AND POLLUTES MORE THAN PIPELINE. AND IF A BIG DROUGHT HITS ANY OF THE STATES THE PIPELINE GOES THROUGH THEY COULD CHANGE TO WATER PUMPED FROM THE VAST OCEANS TO AGRICULTURE OR OTHER AFTER DISALTIFCATION OF SALT WATER
Feel Better? The fact of the matter is the pipelines will get built, just a little later than originally planned. By the time the pipelines get built their will be little demand for Bakken Oil in the Gulf refineries. Eagle Ford Crude production is nearly equal to that of the Bakken and is much closer to hand (W. of San Antonio, TX). A majority of Gulf Coast refineries are designed for a heavier Crude than that which comes from the Williston Basin (Bakken and Three Forks). If they were to run a blend of mainly Light Crudes they would be have to reduce their total output since the light crudes like Bakken yield lots of Gasoline, but much less diesel fuel and jet fuel. What is expected to happen is that the will blend heavy Canadian Tar-Sands crude in a 50/50 blend with either Bakken or Eagle Ford crude. The problem for North Dakota producers will come in about 2017 when US produced light crude fully displaces foreign light crude, and the Gulf has an excess of that type of crude. At that point the Oil Producers are expected to push Congress to allow them to export crude so that they can get world prices for it. If the Republican Party controls the White House and Congress look for it to happen. Right now it is illegal to export any crude produced in the US or US territorial waters, except for that produced in Alaska.
The Oil Producing companies are not altruistic, they do not care what you pay for gasoline. As they gradually selloff their refinery properties they won't care whether you buy fuel from them or not.
Remember the words of that great Sicilian-American philosopher Don Vito Corleone "Business is Business"
beaulieu diningcar BNSF's announcement today is that they are currently able to transport 1M barrels per day. They have increased their capacity because of the lack of adequate pipelines, and because of the dramatic increase in production. If they currently have 1M bbl per day capacity, then they probably have overbuilt. Current production is in the 650,000 bbl per day range, with rail getting a bit over half of that, and BNSF is getting about 75% of rail's share. At current growth rates production will be in 700 - 800 thousand bbl per day by this time next year, by the end of next year there will be an additional 350,000 bbl per day pipeline capacity out of the area.
diningcar BNSF's announcement today is that they are currently able to transport 1M barrels per day. They have increased their capacity because of the lack of adequate pipelines, and because of the dramatic increase in production.
BNSF's announcement today is that they are currently able to transport 1M barrels per day. They have increased their capacity because of the lack of adequate pipelines, and because of the dramatic increase in production.
My guess is that 1M bbl/day capacity is the sum of the max capacity at all the loadouts. Some loadouts may get several trains in a day, while others get none. And then the next day, the roles are reversed at the different loadouts. They have to be somewhat overbuilt to handle peak loads.
There have been other posts regarding this subject, but I am too lazy to hunt them up. The referenced article from the Dallas Morning News may be of interest to readers:
http://bizbeatblog.dallasnews.com/2012/09/bnsf-railway-to-spend-197m-to-boost-capacity-to-haul-oil-out-of-n-dakota-montana.html/
Elizabeth Souder has an excellent reputation in the Metroplex. Her reporting is noted for its accuracy.
Hopefully, the railroads will be able to capture and keep a significant portion of this business. It would help offset the projected decline in coal shipments.
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