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Linn Energy, LLC (LINE) Message Board

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  • rlp2451 rlp2451 Jan 20, 2013 7:24 PM Flag

    Williston Basin OIL takeaway

    OK I just can't stand it. You are a complete idiot.

    What was the total daily production? Around 750,000 BPD?

    How can you have both 2012 numbers for pipelines (463,000) and rail (730,000) add up to 60% more than the total?

    And there's this from Bloomberg last week:
    Enbridge Inc. (ENB)’s North Dakota pipeline system has been underused for the past three months as railroads move more oil out of the Bakken shale play, a refining company told U.S. regulators.
    Enbridge’s plans to expand its pipeline network out of the Bakken won’t stop railroads from taking business, Flint Hills Resources LLC, a unit of Koch Industries Inc., said in a filing with the Federal Energy Regulatory Commission.

    “This trend is not temporary,” Flint Hills said. “Rail transportation is becoming more competitive and will continue to take barrels away from the Enbridge North Dakota system.”

    Railways have emerged as a competitor to pipelines as production from shale fields has grown faster than pipeline space. While rail is typically more expensive than pipelines, railcars can reach markets that pipelines don’t, yielding higher prices for producers.

    And even this from last September:

    In September, Burlington Northern announced it had increased its capacity to haul Bakken crude to 1 million barrels/day. That's saying something considering total North Dakota oil production in August amounted to just over 700,000 barrels/day. BNSF has announced that it would spend $1.1 billion on locomotives, freight cars and related equipment to boost its crude-shipping capability from the Bakken. The company is developing over 35 facilities for unloading crude oil from trains in several states.

    Your favorite new website is of course going to promote pipelines - duh! Too bad their numbers are reversed. And you believe everything they say, even when I pointed out some time ago the information was outdated. How completely narrow minded can you get?

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    • I do understand why you cannot stand it.

      Pipe cost around $1 and train $10 to $15 a barrel.It is a price driver not a cost driver. It requires large price discount which are narrowing already with the expansion of Seaway.

      Obama will not open the XL as he should. But it will eventually open.

      ND and oil production around these areas is not declining as you claimed but continuing to expand dramatically. But thanks to Obama not at the rate free market economics would mandate.

      “This trend is not temporary,” Flint Hills said. “Rail transportation is becoming more competitive and will continue to take barrels away from the Enbridge North Dakota system."

      So you took the word of a spinner who claimed rail is getting more competitive. NO IT IS NOT. Rail is dependent on discounts which the free market is working to close. Not competition but interim step.

      Check ETP plans to switch gas lines which are no longer need to supply oil to the NE refineries. The Canadians are also looking at flipping existing natural gas lines to oil.

      Very very foolish RLP'd. No one is responsible except you and your very small troop.

      • 2 Replies to norrishappy
      • Yeh, how many pipes does ETP have in the Bakken?

        And I see you can't do the math.

      • Or tell it to Phillips 66, who announced this last week:

        Phillips 66 said on Tuesday it entered a five-year commitment to ship North Dakotan crude oil by rail to its New Jersey refinery, making an estimated $1 billion bet that North American crude will remain cheap.

        Under the terms of the contract to use Global Partner LP's loading facilities and terminals, Phillips 66 will receive some 50,000 barrel-per-day of Bakken crude oil at its 238,000 bpd Bayway refinery in Linden, New Jersey, on a take-or-pay basis, equal to 91 million barrels over the five-year period.

        Global LP said it will load the Bakken crude shipments at Basin Transload LLC's rail facilities in North Dakota and ship it to its terminal in Albany, New York, on Canadian Pacific's rail network.

        The Houston, Texas-based refiner's commitment only covers a fraction of the cost of moving oil by rail. Phillips must also pay the train operators that transport the crude as well as cover the cost of buying or leasing tank cars.

        Both companies declined to comment on the financial terms of their deal.

        "Our five-year agreement with Global assures us long-term access to advantaged crude for our Bayway refinery through what we believe is a cost competitive ... system," Tim Taylor, Phillips 66 executive vice president for commercial, marketing, transportation & business development said in a statement.

        The latest commitment furthers Phillips 66's plan to tap more cheap inland U.S. crude at its refineries. The company has ordered 2,000 railcars, which it will begin receiving early this year.

        Phillips 66 Chief Executive Greg Garland told Reuters last year that his company could increase the amount of Bakken crude it processes at the Bayway plant to 100,000 bpd. The refinery already processes 30,000 bpd to 40,000 bpd of cheaper Bakken crude delivered via rail.

        Refinery analysts noted the five-year commitment is the longest crude-by-rail deal to emerge since the shale revolution upended U.S. domestic oil production in the last few years.

        "It is almost like a pipeline deal and that's no surprise because rail is the way Bakken crude will move to the East Coast for an extended period of time," said John Auers, senior vice president of refinery specialist Turner, Mason & Company in Dallas.

    • Of course they are idiots rlp.

      Norris is a political crackpot and sand is his homeboy. Norris is the more volatile of the two however, resorting to twisting and manipulative lies when he has no rationale answer.

      I do have to ask at times, how sand can stomach havin such a nutjob homeboy. I think it is a sort of symbiotic relationship...but is puzzling.

      Valuation? Oh please norris..come up with something really are grasping at straws aren't you. Looks like you are upset after getting your ears pinned back again...

    • It is hard to believe that you asked this seriously:

      "OK I just can't stand it. You are a complete idiot.
      What was the total daily production? Around 750,000 BPD?

      How can you have both 2012 numbers for pipelines (463,000) and rail (730,000) add up to 60% more than the total?"

      So, if you are serious then you should ask someone who is willing to explain it or maybe just read the ND director's cut (comments section) and you will probably be able to figure it out.

    • It is you who are the idiot......and you really are a big one.

      And, you would already know the answer if you actually read the director's cut instead of only cut and pasted the parts that you like.....the answer is there....go read one...any one you like.

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