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On the right track: Bakken operators use rail to enhance returns

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18 March 2013

On the right track: Bakken operators use rail to enhance returns

Report summary

Crude-by-rail has become the preferred method to move Bakken production out of the Williston Basin. Initial concerns over takeaway capacity have been replaced by frustration over depressed crude prices at Cushing. With WTI expected to trade at a US$13/bbl discount to Brent during 2013, operators are railing their barrels to US coasts to increase the value of their oil. The pricing advantage of moving crude to the coasts has outweighed rail transportation costs, which are often 60%,

Table of contents

  • Executive Summary
  • Rail to the rescue
  • Crude by rail goes right to the bottom line
    • Selling at the wellhead
    • Delivering by pipeline
    • Shipping via rail
    • Other options
  • The future of crude rail transport
    • Economic assumptions
    • Modelling assumptions

Tables and charts

This report includes 8 images and tables including:

  • On the right track: Bakken operators use rail to enhance returns: Image 1
  • Selected company Bakken valuations under different transport scenarios
  • On the right track: Bakken operators use rail to enhance returns: Image 3
  • Bakken Unit Train Loading Facilities
  • On the right track: Bakken operators use rail to enhance returns: Table 2
  • Netback prices and transportation costs from the Bakken
  • WTI remains discounted to Brent and LLS
  • Railcar backlog by car type

What's included

This report contains:

  • Document

    On the right track: Bakken operators use rail to enhance returns

    PDF 542.24 KB

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