Related Articles
Forward article link
Share PDF with colleagues

Riding the shale rail

Bakken producers take to the tracks; pipeline capacity also on the rise

AS OIL production from the prolific Bakken Shale has ramped up, swiftly outstripping pipeline capacity, producers have turned to the railways to deliver their crude to market. As of December last year, railcars were carrying up to 65,000 barrels of oil out of the region – about 18% of its total production. That figure is expected to rise further as additional rail facilities are brought into service. Although trains have been used to ship crude oil in the past, expansion of the US pipeline grid made rail transportation less appealing. But when production began in the Bakken Shale in 2008, it quickly exceeded pipeline takeaway capacity. Consequently, Bakken crude was being sold at a discount

Also in this section
China's teapots are filling up
16 July 2018
Chinese authorities are giving independent refiners greater freedom to source their own supplies of crude oil
Pricing up and down
29 June 2018
A trend towards increased spot sales and more flexible contracts is keeping the global LNG industry on its toes
Buying and selling on the up
29 June 2018
Increased spot and short-term LNG trading and sharp price moves have encouraged the global growth of derivatives trading and hub activity