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Riding the Dakota Oil Boom
The Wall Street Journal ^ | NOVEMBER 3, 2011 | MARK PETERS And BEN LEFEBVRE

Posted on 11/02/2011 10:38:54 PM PDT by MinorityRepublican

A truck delivers crude to the Bakken Oil Express Rail Hub in Dickinson, N.D., where it is loaded onto rail cars.

DICKINSON, N.D.—A surge in crude-oil production in North Dakota is fueling a railroad boom in one of the nation's most remote regions, as producers bet that trains will be a quick and lucrative way to break a transportation bottleneck.

The steady conveyor belt of jet-black rail cars is just the latest change in this state's western corner. Already clusters of trailers, known as man camps, have popped up in pasture lands outside of small towns like Watford City, N.D., to house oil workers. Watford City has gone from a quiet crossroads without a single stoplight to a bustling hub with its own rush hour, because it serves as a stopping point for truckers looking for diesel, Red Bull and Hot Pockets.

"We don't have the quiet, tranquil county we had, but a lot of people are working," said Ron Rankin, sheriff of McKenzie County, where Watford City is located.

The trains, trucks and trailers point to what has become a central challenge facing North Dakota's rise as a U.S oil-producing power: how to get crude out of the massive Bakken Shale reserve and to the refineries far away that process it.

North Dakota's output has grown in the last three years from a trickle to nearly 450,000 barrels a day—trailing only Texas, Alaska and California—and could double by the middle of the decade, according to analyst and industry projections. But pipelines in the region already are operating at capacity, and major new lines aren't expected to start going into service until 2013.

In response, companies are building rail terminals. Rail terminals can be developed quickly, giving them an advantage for now over pipelines.

(Excerpt) Read more at online.wsj.com ...


TOPICS: US: North Dakota
KEYWORDS: northdakota; opec

1 posted on 11/02/2011 10:38:56 PM PDT by MinorityRepublican
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To: MinorityRepublican

2 posted on 11/02/2011 10:42:52 PM PDT by re_nortex (DP...that's what I like about Texas.)
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To: MinorityRepublican

“Rail terminals can be developed quickly, giving them an advantage for now over pipelines.”

Bill Richardson loved his choo choo trains.

Hrm, how can union labor fit in here?


3 posted on 11/02/2011 10:56:36 PM PDT by Carthego delenda est (Fox 'news' sucks. Herman Cain 2012!)
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To: Carthego delenda est

It’s a right-to-work state, but the biggest obstacle to more major pipelines (Especially the Keystone pipeline) is the Obama administration.


4 posted on 11/02/2011 11:19:48 PM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: Smokin' Joe

That’s the biggest obstacle to all things good in this nation right now.


5 posted on 11/03/2011 12:32:33 AM PDT by exnavy (May the Lord bless and keep our troops.)
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To: Smokin' Joe

You can bet pipelines are on the drawing board as I type. Just like Pennsylvania in the beginning. First there were wagons moving oil to the refineries, next came trains, then pipelines. You just can’t do it cheaper.


6 posted on 11/03/2011 3:54:56 AM PDT by Recon Dad ("The most important rule in a gunfight is: Always win and cheat if necessary.")
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

thanks MinorityRepublican. By contrast:

http://www.freerepublic.com/tag/solyndra/index


7 posted on 11/03/2011 4:22:49 AM PDT by SunkenCiv (It's never a bad time to FReep this link -- https://secure.freerepublic.com/donate/)
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To: MinorityRepublican

What’s become of the proposed refinery near Sioux City ?
Any news ?


8 posted on 11/03/2011 4:27:05 AM PDT by Eric in the Ozarks
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To: MinorityRepublican
"We don't have the quiet, tranquil county we had, but a lot of people are working,"

It is the same here in the Marcellus Shale play.

It is the liberals'newest argument against drilling --- it changes our way of life and brings all those "outsiders" into our communities along with increased crime.

A local ER doctor wrote in the paper that the increased traffic from drilling is causing increased fatalities on our roads and this is bad.

I wrote back that since medical mistakes kill over 100,000 per year perhaps we should reduce the number of doctors.

9 posted on 11/03/2011 4:35:18 AM PDT by Erik Latranyi (Cain for President - Because I like the content of his character)
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To: Recon Dad
You just can’t do it cheaper.

Or safer. No train to derail, no truck to wreck, no ship to run aground. If it works the first time, it continues to work as long as the pipe stays sound and the welds don't crack--and that can be inspected oftenenough that problems can be caught before they happen or get too serious.

Then all you need to do is to keep idiots from digging holes in it.

10 posted on 11/03/2011 7:19:12 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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