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To: thackney

I still find it hard to believe that rail shipment of crude oil is economical in any sense; a pipeline has got to be more efficient. Yet it appears we are shipping Bakken crude by rail to refineries on the east coast.


3 posted on 04/04/2013 8:15:21 AM PDT by henkster (I have one more cow than my neighbor. I am a kulak.)
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To: henkster

It is 2~3 times the cost typically. But it also allows more flexibility in where it is shipped. In some cases, they can pay more to ship but ship to a difficult place to reach with a pipeline like to New Jersey. There they are competed with oil imported from OPEC and the like rather than domestic served pipelines.


4 posted on 04/04/2013 8:18:11 AM PDT by thackney (life is fragile, handle with prayer)
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To: henkster

Domestic Crude Oil First Purchase Prices by Area
http://www.eia.gov/dnav/pet/pet_pri_dfp1_k_m.htm

Note, some of the difference are due to quality, not just location.

Domestic Crude Oil First Purchase Prices by API Gravity
http://www.eia.gov/dnav/pet/pet_pri_dfp3_k_m.htm

It makes it hard to find a simple comparison, but such has always been the case in the oil market.


5 posted on 04/04/2013 8:20:55 AM PDT by thackney (life is fragile, handle with prayer)
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