I wish Freepers would actually research the facts before mouthing off about topics they do not understand. Phillips 66’s deal involves a single-line movement by Canadian Pacific Railway from North Dakota to a barge dock in Albany, NY, then downriver to Bayway, New Jersey.
BNSF handles crude oil from North Dakota to eastern connections at Chicago (CSXT and Norfolk Southern) bound for northeastern refineries as well. I’m unaware of any pipelines being proposed from the Bakken region to the Northeast. Furthermore, Bakken production far exceeds any proposed future pipeline capacity to Texas, Oklahoma and Louisiana, so the rail option is needed regardless.
I’d bet on a 50-60 day round trip for the cars. To do 50,000 bbls/day requires loading 100 cars every day.
At some point, they will run out of rail cars because every tank car in the US will be “in service” or returning to reload.
“The oil will be moved by rail from North Dakota to a terminal in Albany, N.Y., where it will be loaded onto barges and shipped down the Hudson River to the Bayway refinery”
Most people ASSUME that the only railroad moving out of ND is the BNSF. This is not the first deal like this. JD Irving made a deal similar to this to bring Balkan oil to his refinery in St. John, New Brunswick on the Atlantic Ocean. I believe that also is being shipped across Canada on the CPRS.
What they really need is a canal from Buffalo to Albany that could handle barge traffic off the Great Lakes. (sarc)
Bakken Oil production has reached 682,393 BPD.
https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
The completed Keystone XL by Transcanada would add 510,000 BPD.
Bakken Crude Express Pipeline by ONEOK Partners will add 200,000 BPD.
Steelman pipeline project by Enbridge will carry 145,000 BPD.
Other pipelines are in various planning stages as well.
Would look like it takes the Canadian route from Winnipeg to Montreal, then south to Albany, NY.
As a NJ resident, happy to see BayWay find a long term contract that is under market costs, the refinery is old and inefficient and prone to breakdowns, (and hurricane flooding ), it’s future is always in doubt due to a myriad of problems and a regulatory environment run by pinheads.
The equivalent costs to take a pipeline to TX/LA is not the total transportation cost of end use refined products, TX/LA refineries still have to load the products on tankers and move them tobarges to move them to Albany/Newburgh/Linden/Carteret/Port Reading gas terminals to get the products to the NYC metro market.
If I recall correctly...BNSF was bot by Buffet in '09....Probably after him and Obanana had a meeting.