Top U.S. railroad BNSF Railway Co, one of the largest users of diesel fuel in the United States, plans to test using natural gas to power its locomotives this year, the Wall Street Journal reported on Tuesday.
BNSF Railway, owned by Warren Buffett's Berkshire Hathaway , was not immediately available for comment on Tuesday evening.
If successful, the experiment could weaken oil's dominance as a transportation fuel and provide a new outlet for the glut of cheap natural gas in North America, the paper said in its online edition.
"This could be a transformational event for our railroad," BNSF Chief Executive Matt Rose told the Journal.
Shifting to natural gas would "rank right up there" with the industry's historic transition away from steam engines last century, he told the newspaper.
BNSF is the second-biggest user of diesel in the United States after the U.S. Navy, the paper said citing the company's estimates.
Birdog, your assessment of SD's acreage was a good one, seems the KS part of the play is not stacking up to the rest, and there are pockets of better geology than others, Range is focused on a sweet spot and it looks as if MPO may be in a core part.
The transition to ng may pick up some steam, bad pun, it looks like associated gas may keep gas at low prices for a while. Read some comments from SWN that they don't think exports will be enough to affect prices, not sure I agree. We have lots of oil in NA that needs to get to new places to be used, and we have lots of ng that needs to be moved to new places around the globe, and it seems we will still have enough here to promote chemicals and manufacturing. Saw a comment that a new refinery to be built in Brazil, original cost $4 billion, now up to $20 billion. We could end up exporting a bunch of refined products. There are a bunch of moving parts. Also, I am reading more comments about the Permian being the next big growth area, just now developing.
How's the ranching business, seems the cold weather is behind us.