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Linn Energy, LLC (LINE) Message Board

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  • norrishappy norrishappy Jan 20, 2013 7:40 PM Flag

    Williston Basin OIL takeaway

    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.

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    • Yeh, how many pipes does ETP have in the Bakken?

      And I see you can't do the math.

      • 1 Reply to rlp2451
      • Just have to make a connection to Cushing.

        What nonsense math do you want me to do for you? Neither you or RRB have managed to execute one financial measure correctly to this point. Not one.

        YOu can get the general description from the internet but finance is not engineering with proofs. So you don't understand the limitations or how to overcome them.

        Don't delude yourself if show like a neon sign for all to see.

    • 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.

 
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