According to the Pipeline and Gas Journal, "Rail transportation is quick and the movement of product to market can bring cash much quicker. Crude mving from the Bakken area, is an example. Moving oil from the Bakken by rail to Gulf Coast refineries takes five to seven days. Pipelines take about 40 days."
"Cost of rail shipment of crude is two to three times the typical pipeline cost of $5/bbl. to move oil. But the advantages outweigh the additional cost. The economics for everyone, porducer and shipper, far outweigh the increase. Maybe the most important advantage is the variabiility of markets available because of rail. Markets paying the highest prices for crude can be slected at the time."
"..railroads' revenue for moving crude has risen from $25.5 million in 2008 to $2.15 billion in 2013."
"A recent sudy, sponsored by the north Dakota Petroleum Council (NDPC), found no major differences between Bakken crude and other U.S. crudes."
See: http://www.pgjonline.com/peak-crude-production-requires-new-transport-capacity-variety
WilliamKiesel According to the Pipeline and Gas Journal, "Rail transportation is quick and the movement of product to market can bring cash much quicker. Crude mving from the Bakken area, is an example. Moving oil from the Bakken by rail to Gulf Coast refineries takes five to seven days. Pipelines take about 40 days." "Cost of rail shipment of crude is two to three times the typical pipeline cost of $5/bbl. to move oil. But the advantages outweigh the additional cost. The economics for everyone, porducer and shipper, far outweigh the increase. Maybe the most important advantage is the variabiility of markets available because of rail. Markets paying the highest prices for crude can be slected at the time." "..railroads' revenue for moving crude has risen from $25.5 million in 2008 to $2.15 billion in 2013." "A recent sudy, sponsored by the north Dakota Petroleum Council (NDPC), found no major differences between Bakken crude and other U.S. crudes." See: http://www.pgjonline.com/peak-crude-production-requires-new-transport-capacity-variety
William Kiesel: Seems that you have pointed out a pretty potent economic lesson ! The figures seem to be pretty impressive. Thanks for posting the link to the article.
FTL: [snipped] "...Markets paying the highest prices for crude can be slected at the time."
"A recent sudy, sponsored by the north Dakota Petroleum Council (NDPC), found no major differences
between Bakken crude and other U.S. crudes..."
The statement about" the markets paying the highest prices can be selected at the time." Is reminescent to the way my father supplied his manufacturing lumber plant, in Kansas with its feed stock of Ponderosa Pine ( cut, milled and shipped ( on speculatively loaded cars) by rail from the PNW.) The prices being negotiated whie the car was enroute, and its destination could be changed by the shipper.
Just a comment: In the last three weeks, retail priced gas prices have gone from the $3.00 area to currently at $1.63 around here...
samfp1943 Just a comment: In the last three weeks, retail priced gas prices have gone from the $3.00 area to currently at $1.63 around here...
Typo? Perhaps $2.63?
Dakguy201 samfp1943 Just a comment: In the last three weeks, retail priced gas prices have gone from the $3.00 area to currently at $1.63 around here... Typo? Perhaps $2.63?
Exactly: My Bad it was $2.63
Might have been a case of wishful thinking?
Wonder if Myrphy's friend Spel Czech has a cousin Math Czech?
Here's a regional TV outlet's view of shipping oil by rail - done without talking to anyone at the carrier (CP Rail's former Delaware and Hudson).
http://www.wptz.com/news/train-troubles-oil-traveling-the-tracks-and-why-more-could-soon-be-coming/29933440
Note the anchorwoman and the "expert" strolling (read "trespassing") down the middle of the CP mainline track (nice, shiny 136 lb. rail) without any protective gear.
I wonder if CP Rail could charge them with criminal trespass. With all the fuss over that film crew's fatal fiasco...
Responsible journalism and the dodo have something in common.
Chuck
tomikawaTTResponsible journalism
An oxymoron if ever there were one to be found.
tomikawaTT I wonder if CP Rail could charge them with criminal trespass. With all the fuss over that film crew's fatal fiasco... Responsible journalism and the dodo have something in common. Chuck
Johnny
tomikawaTTI wonder if CP Rail could charge them with criminal trespass.
That type of thing has been known to happen. A California fire inspector got nailed by CalOSHA when a picture of him standing on a roof, without fall protection gear, appeared in a newspaper...
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
We already have the thread about discipline getting assessed to rail employees from admissions in social media - this is no different except the 'miscreants' are incriminating themselves on public media.
Never too old to have a happy childhood!
The politics of cheap oil and domestic pipe line permits.
Greens who want President Barack Obama to kill the Keystone XL pipeline are adding a new weapon to their arsenal of protests and lawsuits — the world’s glut of cheap oil.Read more: http://www.politico.com/story/2014/12/oil-keystone-xl-113551.html#ixzz3M0D6r4Jj
MidlandMikeIf Canada can't find the political will to build any of the 3 proposed heavy oil pipelines within their borders, then I don't think the US should volunteer to accommodate Keystone.
Agreed. Let it go by rail.
Also, Canada and/or the provinces have monkeywrenched so many North Dakota water projects, I don't really care what happens to their Keystone pipeline. (Aside from finding myself on the same side as Obama and the greenies.)
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