| TBK1980 - 4/23/2014 13:25
Also if you can get the oil to the coast they get Brent oil price which has been up 20 dollars a barrel higher
The only reason that oil is railed out of the Bakken is to get it to the coast (east, west, gulf) to receive Brent oil price. Bakken oil is always discounted against WTI. WTI is always discounted against Brent Crude. Oil companies are basically cutting out the middle man (pipelines) in order to increase return on investment. Until selling Bakken oil at Bakken price to pipelines is the same price as Brent Crude (minus trucking, railing, etc) the oil will keep getting railed.
I'm an Engineer for a major Oil & Gas company |
Disputing facts on rail capacity of Bakken oil....
