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8 Pages

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


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 Initial concerns over takeaway capacity have been replaced by frustration over depressed crude prices at Cushing.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%,

What's included?

This report includes 2 file(s)

  • On the right track: Bakken operators use rail to enhance returns PDF - 542.24 KB 8 Pages, 2 Tables, 6 Figures
  • On the right track Bakken operators use rail to enhance returns March 2013.xls XLS - 194.00 KB

Description

This Upstream Oil and Gas Insight report highlights the key issues surrounding this topic, and draws out the key implications for those involved.

This report helps participants, suppliers and advisors understand trends, risks and issues within the upstream oil and gas industry. It gives you an expert point of view to support informed decision making.

Wood Mackenzie's 500 dedicated analysts are located in the markets they cover. They produce forward-looking analysis at both country and asset level across the globe, backed by our robust proprietary database of trusted research.

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

In this report there are 8 tables or charts, including:

  • Executive Summary
  • Rail to the rescue
    • On the right track: Bakken operators use rail to enhance returns: Image 1
  • Crude by rail goes right to the bottom line
    • Selected company Bakken valuations under different transport scenarios
  • Operators diversify crude marketing methods
    • 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
  • The future of crude rail transport
  • Appendix
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