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More Bakken Crude Will Move By Rail With DAPL In Limbo

December 6, 2016 | Oil and Gas Investor | As oil prices recover and U.S. shale production picks up, energy companies that had planned to ship crude on the Dakota Access Pipeline (DAPL) will turn to rail, a transport method that poses its own risks to the environment and local communities.

The Dec. 4 decision by the Army Corps of Engineers to deny Energy Transfer Partners an easement to complete the line means shippers who expected to see another 570,000 barrels of daily Bakken pipeline capacity in 2017 will have to find new ways to move supply.

Rail comprises nearly 65% of total crude export capacity in the Bakken Shale, but is currently underutilized because it is more costly and less efficient. In September, only 29% of total Bakken oil production moved by rail, according to the latest figures from the North Dakota Pipeline Authority.

[Read the entire article here.]

 

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