North Dakota to require every barrel of crude oil be filtered

Reuters ^ | Dec 9, 2014 | ERNEST SCHEYDER

[Red Badger]

........ not only merely dead: really, most sincerely dead!?..............

[thackney]

Actually, it has some reasoning. Some of the companies were already doing it.

[21twelve]

I imagine that this process has to be done at the refinery anyway? Although I suppose doing it at the end is most cost-efficent - but I guess this just means some of the refining process is moved closer to the oil fields? (More jobs for North Dakota!).

Does it also reduce the volume of the load being shipped? I would imagine it does, so more usuable oil can be hauled in each tanker car.

[Olog-hai]

I didn’t say people won’t use the oil. I just said that adding this process will make it more expensive.

[Truth29]

Would this process produce some usable products that could be sold? It almost sounds a little like a refinery operation.

[thackney]

I imagine that this process has to be done at the refinery anyway?

The basic function of the refinery is to separate the components of the crude oil.

Does it also reduce the volume of the load being shipped?

But these components are mostly too light to become transportation fuel. It actually raises the value of the oil that is shipped if the split is right.

I also wonder if this can be used as bitumen diluent for Canada heavy crude.

[USFRIENDINVICTORIA]

This isn’t a bad idea (if you accept the premise that the oil has to be shipped by rail) — and it needn’t cost much. It might even be a money maker.

The volatile compounds — propane, butane, etc. are valuable, if there’s a means to ship them to market. Regardless, the heat for the “filtering” process (essentially, the evaporation part of a distillation process), could be provided by the burning the volatile compounds.

That said, a better idea would be to ship the stuff by pipeline, rather than by rail.

[thackney]

Would this process produce some usable products that could be sold?

Yes, propane and butane for example. The question is the created supply versus local demand. It may just mean transporting the smaller amount of light stuff in the appropriate pressure containing rail car, versus the lighter protection DOT-111 used for the crude.

[Cold Heart]

Just so they sell or use the NGL’s and not just flare it off.

[bert]

Oh come now. That is so simplistic

A pipeline is needed to get rid of the railroads and get them back to moving grain

[thackney]

I’m even okay with them burning it, if the pay the mineral owner for it.

But if you separate at/near the rail yard, they make rail cars suitable to haul propane and other NGL’s and folks pay pretty decent money for a whole rail car full of it.

The idea is just to get the higher pressure components out of the rail car designed for lower pressure oil.

[Olog-hai]

So we’re ending up with no pipeline and more expensive overall cost thanks to filtration, which is a double whammy. Looks like Buffett’s “skin in the game” has been thrown in the incinerator.

[bert]

a new pipeline from Minnesota is not related to the keystone

[njslim]

Probably trying to rid it of Butane and other volatile natural gas liguids

NGL are very valuable as feedstock in petro chemicals.....

[Cold Heart]

I was in the petroleum transportation industry. Nothing bugged me more than seeing flare offs. During the 70’s gas shortage, Union Oil burned off gasoline in their largest burner for 24 hours because they couldn’t get the price they wanted from Pemex. Meanwhile people were shooting each other at gas stations.

I know flare offs have to happen sometimes, but build for efficiency from the start.

[crusty old prospector]

I believe Bakken crude is sweet.

[thackney]

There has been talk of some sour showing up.

http://www.petroleumnewsbakken.com/pntruncate/356656504.shtml

http://mobile.reuters.com/article/idUSL5N0EA3SU20130529?irpc=932

http://www.fool.com/investing/general/2013/06/04/is-the-bakken-turning-sour.aspx

[longtermmemmory]

this is because of buffett’s railroad. Obama blocks keystone. the crony rail owners make profits by restricting advancing tech.

see reardon metal.

[2001convSVT]

It is still hazardous and everyone knows it. This is no different then paying protection money to the mob. It is a tax that all consumers will pay.

[Balding_Eagle]

What I assume to be the trains with Bakken oil have begun to travel from north to south along I-25, through Denver and south.

Each train has something I’ve never seen before, a box car between the tank cars and the engine at each end of the train.

I presume that is to keep the oil a distance from the engines.