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Crude-by-rail volumes to the East Coast are declining
Last edited Thu Aug 4, 2016, 02:24 PM - Edit history (1)
Hat tip, albeit in a roundabout way: DonnyFerguson and Mark_J_Perry
August 3, 2016
Crude-by-rail volumes to the East Coast are declining
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
Note: PADD is Petroleum Administration for Defense District. Data shown include all U.S.-only rail movements (inter- and intra-PADD), and exclude movements to and from Canada.
Movements of crude oil by rail within the United States averaged 443,000 barrels per day (b/d) in the first five months of 2016, down 45% from the same period last year. Fewer shipments of crude oil by rail from the Midwest (PADD 2) to the East Coast (PADD 1) account for about half of the decline. Crude oil shipments by rail have generally decreased since last summer for several reasons, including narrowing price differences between domestic and imported crude oil, the opening of new crude oil pipelines, and declining domestic production in the Midwest and Gulf Coast onshore regions.
The economics of crude-by-rail transportation depend largely on the relationship between the prices of domestic and international crude oils. Domestic crude oils priced in the Midwest and western Texas are no longer heavily discounted relative to imported crude oils priced in the North Sea. The narrower the spread between domestic and imported crude oils, the more likely coastal refiners will choose to run imported crudes rather than domestic supplies shipped by rail.
Crude oil carried by rail from the Midwest to the East Coast remains the country's largest crude-by-rail movement at 176,000 b/d, or 45% of the total crude oil moved by rail within the United States in May 2016. Crude oil imports processed by East Coast refineries have generally increased since early 2015, averaging 760,000 b/d in May 2016, up from 666,000 b/d in May of last year.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
EIA develops the crude oil and biofuels rail movement data using information provided by the Surface Transportation Board (STB), along with data from Canada's National Energy Board, other third-party sources, and several EIA surveys. EIA's energy-by-rail data are subject to revision as new information becomes available, especially the most recent one to three months of rail data from the STB. More information is available in EIA's energy-by-rail data methodology report.
Principal contributor: Arup Mallik
Crude-by-rail volumes to the East Coast are declining
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
Note: PADD is Petroleum Administration for Defense District. Data shown include all U.S.-only rail movements (inter- and intra-PADD), and exclude movements to and from Canada.
Movements of crude oil by rail within the United States averaged 443,000 barrels per day (b/d) in the first five months of 2016, down 45% from the same period last year. Fewer shipments of crude oil by rail from the Midwest (PADD 2) to the East Coast (PADD 1) account for about half of the decline. Crude oil shipments by rail have generally decreased since last summer for several reasons, including narrowing price differences between domestic and imported crude oil, the opening of new crude oil pipelines, and declining domestic production in the Midwest and Gulf Coast onshore regions.
The economics of crude-by-rail transportation depend largely on the relationship between the prices of domestic and international crude oils. Domestic crude oils priced in the Midwest and western Texas are no longer heavily discounted relative to imported crude oils priced in the North Sea. The narrower the spread between domestic and imported crude oils, the more likely coastal refiners will choose to run imported crudes rather than domestic supplies shipped by rail.
Crude oil carried by rail from the Midwest to the East Coast remains the country's largest crude-by-rail movement at 176,000 b/d, or 45% of the total crude oil moved by rail within the United States in May 2016. Crude oil imports processed by East Coast refineries have generally increased since early 2015, averaging 760,000 b/d in May 2016, up from 666,000 b/d in May of last year.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
EIA develops the crude oil and biofuels rail movement data using information provided by the Surface Transportation Board (STB), along with data from Canada's National Energy Board, other third-party sources, and several EIA surveys. EIA's energy-by-rail data are subject to revision as new information becomes available, especially the most recent one to three months of rail data from the STB. More information is available in EIA's energy-by-rail data methodology report.
Principal contributor: Arup Mallik
ETA:
Then I read this: Western Railroad Discussion > Another nail in Bakken crude by rail?
Date: 08/03/16 07:06
Another nail in Bakken crude by rail?
Author: Lackawanna484
Enbridge and Marathon Oil have agreed to purchase a substantial stake in the nearly operational pipeline carrying oil from the Bakken region of North Dakota to Illinois. Combined with the Southern Access pipeline and its connections, this will allow crude to flow by pipe from North Dakota to the US Gulf region. The move has been long expected.
The decline in railed crude has been sharp, as some observers believe the pipes may reduce transfer costs by 2/3 to the shipper when compared with rail. In the early days of the frac boom, rail was the only way to get crude out to the east coast, or to the Gulf.
Buying a stake
Another nail in Bakken crude by rail?
Author: Lackawanna484
Enbridge and Marathon Oil have agreed to purchase a substantial stake in the nearly operational pipeline carrying oil from the Bakken region of North Dakota to Illinois. Combined with the Southern Access pipeline and its connections, this will allow crude to flow by pipe from North Dakota to the US Gulf region. The move has been long expected.
The decline in railed crude has been sharp, as some observers believe the pipes may reduce transfer costs by 2/3 to the shipper when compared with rail. In the early days of the frac boom, rail was the only way to get crude out to the east coast, or to the Gulf.
Buying a stake
