Statoil leases more than 1,000 railroad cars to carry Bakken crude

Statoil ASA said it has leased more than 1,000 railroad cars and plans to transport crude oil from the Bakken formation to refineries on the US East Coast and Gulf of Mexico and to Canada. Rail shipments are expected to start during September.

“The value of our Bakken crude is lowered by present limited pipeline capacity in the region,” said Tor Martin Anfinnsen, Statoil senior vice-president of crude, liquids, and products. “Transporting the crude by rail bypasses the pipeline bottlenecks and ensures our products get to market, and that we get the highest possible price.”

Statoil plans to boost its North American production to more than 500,000 boe/d in 2020 from less than 100,000 boe/d in 2011. Some of the anticipated growth is expected to come from the Bakken and Three Forks plays, where Statoil acquired holdings with its 2011 acquisition of Brigham Exploration (OGJ Online, Oct. 17, 2011).

Statoil said it has long-term leases for the tank cars, giving it the capacity to move 45,000 b/d of crude. Estimated rail times to Canada, the US East Coast and gulf coast are 14-15 days round trip, including loading and unloading.

Other companies also move or plan to move Bakken crude by rail. These include EOG Resources Inc., Marathon, Enbridge Energy Partners LP, Phillips 66, and Tesoro Corp.

Related Articles

WINTER HITS U.S. INDUSTRY, STRAINS GAS SUPPLY

01/01/1990 A record breaking cold front before and during the weekend of Dec. 23 shut down several major refineries and petrochemical plants in the U.S. Gulf ...

TEX/CON, SPUN OFF FROM BP, UP AND RUNNING

01/01/1990 BP Exploration Western Hemisphere has spun off its U.S. Lower 48 onshore exploration/development and gas gathering, transportation, and marketing a...

SAMEDAN BUYS GULF OF MEXICO PRODUCTION

01/01/1990 Samedan Oil Corp. has expanded its inventory of producing leases in the Gulf of Mexico. The wholly owned subsidiary of Noble Affiliates Inc., Ardmo...

OIL FLOW RISING IN E. CHINA REGION

01/01/1990 Production is building from an oil producing area in the lower reaches of the Yangtze River in eastern China's Jiangsu Province. The northern J...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected