Western Railroad Discussion > Phillips 66 orders 2,000 new oil tank rail cars

The Financial Times reports that Phillips 66, the oil company, has placed an order for 2,000 new oil tank cars. The order is seen as confirmation that no new Bakken pipe lines will be constructed soon. The 2,000 cars are expected to help PSX move up to 120,000 barrels of North Dakota oil to refineries on the east and west coast of the US.

No word yet on who gets the order.

(subscription site, so no link)

Lackawanna484 Wrote:
-------------------------------------------------------
> The Financial Times reports that Phillips 66, the
> oil company, has placed an order for 2,000 new oil
> tank cars. The order is seen as confirmation that
> no new Bakken pipe lines will be constructed soon.
> The 2,000 cars are expected to help PSX move up to
> 120,000 barrels of North Dakota oil to refineries
> on the east and west coast of the US.
>
The new Keystone Pipeline, LP, permit application can be found here: http://keystonepipeline-xl.state.gov/proj_docs/index.htm

That's on top of a new order from CIT (although there is no breakdown of tank cars to covered hopper cars):


http://finance.yahoo.com/news/cit-announces-order-3-500-123000469.html




Allen



Edited 1 time(s). Last edit at 06/07/12 15:43 by bradleymckay.

All,

Remember the Keystone pipeline is for Canadian crude from Alberta that is almost exclusively for export. The Bakken oil from the Dakotas is more for domestic use and is already moving by rail for the most part as it is going to refineries not served by pipelines.

J.Ferris Wrote:
-------------------------------------------------------
> All,
>
> Remember the Keystone pipeline is for Canadian
> crude from Alberta that is almost exclusively for
> export.


Political urban myth.

darkcloud Wrote:
-------------------------------------------------------
> J.Ferris Wrote:
> --------------------------------------------------
> -----
> > All,
> >
> > Remember the Keystone pipeline is for Canadian
> > crude from Alberta that is almost exclusively
> for
> > export.
>
>
> Political urban myth.

Whatever. If the price of crude keeps falling it won't matter, even at current prices not only will tar-sand oil go to sleep, so will Bakken. As of yesterday:

West Texas Intermediate 81.64
Williston Basin Sweet* 64.68
Williston Basin Sour 53.08
Colorado D-J Basin 70.80
Western Colorado 69.58

*Mostly Bakken

Selected prices from Rocky Mountain Oil Journal, http://www.rmoj.com/

Today's Cushing spot is $84.82. http://www.bloomberg.com/energy/



Edited 2 time(s). Last edit at 06/07/12 17:17 by lowwater.

Our crude is a little cheaper here in Utah, Bruce. Uintah Basin Black Wax is $68.32/bbl and Altamont Yellow Wax (yes it really is bright yellow crude oil, not black) is $69.32/bbl. It should be noted that API Gravity adjustments and transportation costs, either by pipeline or by tank truck, both reduce the price realized by the operator. This Utah crude is excellent refining stock but it must be kept at around 105 degreesF or it will "set up" or harden into a solid form. So, it either must be mixed with other crudes or shipped heated in insulated tank trucks.

Dick
Roosevelt, Utah

2ebright Wrote:
-------------------------------------------------------
> Our crude is a little cheaper here in Utah, Bruce.
> Uintah Basin Black Wax is $68.32/bbl and Altamont
> Yellow Wax (yes it really is bright yellow crude
> oil, not black) is $69.32/bbl. It should be noted
> that API Gravity adjustments and transportation
> costs, either by pipeline or by tank truck, both
> reduce the price realized by the operator. This
> Utah crude is excellent refining stock but it must
> be kept at around 105 degreesF or it will "set up"
> or harden into a solid form. So, it either must be
> mixed with other crudes or shipped heated in
> insulated tank trucks.
>
> Dick
> Roosevelt, Utah

Yeah, Dick I know. "Prices slightly higher west of the Mississippi!"<g> I don't know how western Colorado crude, or gas liquids for that matter, get out of here, no pipelines that I know of and no rail loading facilities yet so it must all be by truck.

We used to see "hot oil" tank trucks all the time around here, haven't seen any for quite awhile, although I suspect a lot of that was asphalt and heavy bottoms from the gilsonite* refinery at Fruita. A quick Google indicates that gilsonite is still being mined in significant quantity, relatively speaking, apparently mostly for use in o&g drilling fluids. How is it mined now? Shipped? I know not that many years ago some at least was still making its way out via rail from Craig....

Bruce

*Gilsonite is actually a trademark registered in 1921, the mineral name that nobody knows is uintahite.

Unit oil trains over Solider Summit and the Moffat is this a possibility? How much of this Black and Yellow Crude is moved out via truck?

No possibility of unit oil trains over Soldier Summit at all. I don't know how many barrels a day of crude oil leaves the Uintah Basin, but it is down considerably from the early 80's. The majority goes out by truck to refineries in Salt Lake City. These refineries are specially designed to handle this unusual crude oil. A smaller fraction goes to the same Salt Lake refineries via Chevron's Rangeley to Salt Lake pipeline. US40 west of Duchesne, Utah to SLC is a virtual rolling pipeline due to the large number of crude tankers.

Dick
Roosevelt, Utah

And we're still paying $4.25 gal. for regular Chevron here in San Diegoland...



lowwater Wrote:
-------------------------------------------------------
> darkcloud Wrote:
> --------------------------------------------------
> -----
> > J.Ferris Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > All,
> > >
> > > Remember the Keystone pipeline is for
> Canadian
> > > crude from Alberta that is almost exclusively
> > for
> > > export.
> >
> >
> > Political urban myth.
>
> Whatever. If the price of crude keeps falling it
> won't matter, even at current prices not only will
> tar-sand oil go to sleep, so will Bakken. As of
> yesterday:
>
> West Texas Intermediate 81.64
> Williston Basin Sweet* 64.68
> Williston Basin Sour 53.08
> Colorado D-J Basin 70.80
> Western Colorado 69.58
>
> *Mostly Bakken
>
> Selected prices from Rocky Mountain Oil Journal,
> http://www.rmoj.com/
>
> Today's Cushing spot is $84.82.
> http://www.bloomberg.com/energy/

the_expediter Wrote:
-------------------------------------------------------
> And we're still paying $4.25 gal. for regular
> Chevron here in San Diegoland...
>
>
>
> lowwater Wrote:
> --------------------------------------------------
> -----
> > darkcloud Wrote:
> >
> --------------------------------------------------
>
> > -----
> > > J.Ferris Wrote:
> > >
> >
> --------------------------------------------------
>
> >
> > > -----
> > > > All,
> > > >
> > > > Remember the Keystone pipeline is for
> > Canadian
> > > > crude from Alberta that is almost
> exclusively
> > > for
> > > > export.
> > >
> > >
> > > Political urban myth.
> >
> > Whatever. If the price of crude keeps falling
> it
> > won't matter, even at current prices not only
> will
> > tar-sand oil go to sleep, so will Bakken. As of
> > yesterday:
> >
> > West Texas Intermediate 81.64
> > Williston Basin Sweet* 64.68
> > Williston Basin Sour 53.08
> > Colorado D-J Basin 70.80
> > Western Colorado 69.58
> >
> > *Mostly Bakken
> >
> > Selected prices from Rocky Mountain Oil
> Journal,
> > http://www.rmoj.com/
> >
> > Today's Cushing spot is $84.82.
> > http://www.bloomberg.com/energy/

Well, here in Portland, Oregon. Gas ranges from $4.10 to as high as $4.45. Over the weekend, I was in Rainier, Washington (South of Tacoma and NE of Centralia) and gas at a Shell was $4.999... I couldn't believe my eyes when I saw that.. $5 for one gallon of gas.. Good thing we were on 2/3rd of a tank..

SP8100

I'm delighted that the tank cars will be manufactured in the US, by US workers. To haul oil pumped in North Dakota, to refineries in places like Pennsylvania, New Jersey, and California.

That's excellent for everyone

Gee, I am still paying 3.43 a gallon in Kansas City KS
Bob

Bob Miller
Kansas City, KS

Bob, it was $3.09 about forty miles East of you a week ago.

I see today that gas here in Ellsworth, KS went back up to 3.29. Darn it.upkpfan

lowwater Wrote:
-------------------------------------------------------

> Whatever. If the price of crude keeps falling it
> won't matter, even at current prices not only will
> tar-sand oil go to sleep, so will Bakken. As of
> yesterday:
>
> West Texas Intermediate 81.64
> Williston Basin Sweet* 64.68
> Williston Basin Sour 53.08
> Colorado D-J Basin 70.80
> Western Colorado 69.58
>
> *Mostly Bakken
>
> Selected prices from Rocky Mountain Oil Journal,
> http://www.rmoj.com/
>
> Today's Cushing spot is $84.82.
> http://www.bloomberg.com/energy/

Prices like that, are reducing the number of trains hauling Bakken Oil to the Gulf Coast. I believe only two trains from CP to KCS and the Port Arthur, TX terminal have run, and the CP's train for the UP and St. James, LA isn't running very often either. With a better differential against Brent Crude, more trains are running to the East Coast, in CP's case mainly to Albany, NY but St. John's, NB could become more popular also. I have heard ~$80 bbl for Tar-Sands Crude, and ~$60 bbl for Bakken Light as the cost of production.

The Washington Post has a pretty good overview of the oil finding and hauling process from the oil sands and the Bakken, all the way to market. Generally non-political, but it reaffirms rail's role in the short and medium term future for moving the oil product.

Overview = the guy rented a car and started in the tar sands, and followed the oil south for a few thousand miles. Writing about it every day or two.

http://www.washingtonpost.com/blogs/keystone-down-the-line/