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This Might Be The Most Exciting Chart In America
TBI ^ | 11-6-2011 | Joe Weisenthal

Posted on 11/06/2011 11:23:06 AM PST by blam

This Might Be The Most Exciting Chart In America

Joe Weisenthal
Nov. 6, 2011, 9:26 AM

Last night we were examining the latest rail industry data supplied by the Association of American Railroads in its monthly Rail Time Indicators Report (.pdf).

This chart really caught our eye.

Image: Association of American Railroads

Suddenly, domestic transfer of petroleum products, via rail, is growing like crazy, far surpassing pre-crisis levels.

See, there's a shale boom in America, most prominently in North Dakota, in a big area called the Bakken.

This chart from the Energy Policy Research Institute (a pro-domestic energy DC-based lobbying group) says it all.

Image: http://eprinc.org/

Anyway, this is moving the needle big time domestically, as the above rail chart shows, but also as this look at domestic energy production form the EIA shows... the US is reversing its decline in domestic production.

Image: EIA.gov

Now obviously we're aware that all this is incredibly controversial, as shale is associated with all kinds of environmental concerns, and controversial pipelines, and whatnot.

But the fact that somewhere there's a sign of real secular growth is pretty intriguing.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: economy; oil; recovery; shipping

1 posted on 11/06/2011 11:23:09 AM PST by blam
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To: blam

Someone once said “Drill Here! Drill Now!” and the media laughed her off stage.


2 posted on 11/06/2011 11:26:46 AM PST by ClearCase_guy (I won't vote for Romney. I won't vote for Perry.)
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To: chuckee
I'm reminded of this article:

World Power Swings Back To America

3 posted on 11/06/2011 11:29:33 AM PST by blam
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To: blam

Same thing is happening in south Texas right now.


4 posted on 11/06/2011 11:31:42 AM PST by Marcella (Newt will smash Obama in debates. Newt needs money.)
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To: ClearCase_guy

You’re right and when we can get to the “Rock Oil” on Federal lands the graph line will head straight up.

We are witnessing the rebirth of o/g in America.


5 posted on 11/06/2011 11:34:55 AM PST by Recon Dad ("The most important rule in a gunfight is: Always win and cheat if necessary.")
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To: blam

I also understand that a part the increase in rail traffic is coming out of Canada. That is another reason they want to build the pipeline as it is a cheaper method to transport the oil.


6 posted on 11/06/2011 11:36:21 AM PST by Parley Baer
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To: ClearCase_guy
You are funny, that drilling was going on a long time before algore invented the name. LOL
7 posted on 11/06/2011 11:38:59 AM PST by org.whodat (Just another heartless American, hated by Perry and his fellow demorats.)
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To: blam

***controversial pipelines***

???? The existing ones or are there proposed new pipelines???

http://www.theodora.com/pipelines/united_states_pipelines.html


8 posted on 11/06/2011 11:39:06 AM PST by sodpoodle (Cain - touching the better angels of our nature. Newt - knowledge is power.)
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To: blam
I remember reading an analysis of the this upsurge in oil transport by rail. As I recall the reasoning:

- Lack of a new pipeline, a current US political issue. (Apparently Obama does NOT want to facilitate oil transport and prefers "green" energy.
- Higher prices for pipeline transport (given the lack of pipeline capacity)
- Overseas demand: Many of the rail shipments going to ports for overseas delivery, with the high oil prices paid making it a cost effective method of transport.
- Also noted was a limit to the number of tanker cars available at this time.

9 posted on 11/06/2011 11:51:17 AM PST by LZ_Bayonet ( I AM THE TEA PARTY LEADER !)
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To: blam

I guess Obama will claim credit for it.


10 posted on 11/06/2011 12:08:03 PM PST by kabar
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To: org.whodat
You are funny, that drilling was going on a long time before algore invented the name. LOL

Sorry for the confusion. I did not mean to imply that Sarah Palin invented the complete art and science of extracting petroleum products from the ground for use as an energy source.

I was merely implying that some politicians understand the value of using domestic resources, and some do not. Some politicians laugh and say "That will take 10 years to make a difference!" and then use that as an excuse not to even start.

We have an advanced society only because someone decided that "Now" is always the right time to start the important stuff.

11 posted on 11/06/2011 12:13:33 PM PST by ClearCase_guy (I won't vote for Romney. I won't vote for Perry.)
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To: blam

I love trains. Maybe I’ll ask Santa for train stock shares.


12 posted on 11/06/2011 12:34:49 PM PST by married21 (As for me and my house, we will serve the Lord.)
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To: blam
The increase in domestic U.S. production is happening despite everything that Obama and the Dems have done to thwart it. Perversely, Obama will likely get the credit for the increased production, and the resultant economic turnaround.
13 posted on 11/06/2011 12:39:02 PM PST by USFRIENDINVICTORIA
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To: blam

Dont get too excited. I have been seeing a lot of military equipment moving. They could be prepping for iran.


14 posted on 11/06/2011 12:47:33 PM PST by Walkingfeather
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To: blam

This is great news and I don’t want to rain on the parade but the dip with oil price is characteristic of a reservoir that has high initial or flush production than tapers off to some long term very low level. Drilling like mad is the only way to sustain the rate and the increase. When the drilling ends the rate falls like a rock. Good while it lasts though.

As for rail transport, a train wreck would make a pipeline spill look like a non-event. Trains have no spill containment or pipeline segmented valves for spill minimization. Train wrecks are frequent, pipeline spills are not. Ever see an outfit called Hulcher Emergency services running up and down the highway with the big sideboom cats? They are train wreck clean up people and they do a brisk business. You don’t see a pipeline break and recovery clean up outfit running up and down the roads do you? There isn’t much demand for one.

The railroads, Burlington Northern owned by Buffet, doesn’t want to see the Keystone pipeline or any other pipeline built... EVER and they will fight it tooth and nail. Buffet’s suction is in the right pit with obastard to fight the pipelines. People have no idea what goes on behind the scenes.

Years ago the railroads and barge lines fought the slurry pipelines for coal by blocking rights of way and they won. This is why coal trains run all the time through towns and cities all across the United States. I’ve seen the barge lines and railroads fight against each other too. Even to the point of keeping draw bridges down under dangerous conditions to prevent passage of tow boats.

Business can be a nasty nasty affair and it is only always one sided.


15 posted on 11/06/2011 1:31:57 PM PST by Sequoyah101 (Half the people are below average.)
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To: Walkingfeather
"Dont get too excited. I have been seeing a lot of military equipment moving."

His chart is for rail shipped petroleum and petroleum products.

Tank and cannon transport are not included in this graph.

16 posted on 11/06/2011 2:01:20 PM PST by SnuffaBolshevik ("The trouble with internet quotations is that you don't know if they are true"-Abraham Lincoln.)
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To: Walkingfeather
They could be prepping for iran.

Or for when TSHTF.

17 posted on 11/06/2011 2:04:31 PM PST by Oatka ("A society of sheep must in time beget a government of wolves." –Bertrand de Jouvenel)
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To: Sequoyah101

Is this the series of photos of when tugboat and coal barge meet bridge?
http://www.maritimeconsultant.com/tugboat.htm


18 posted on 11/06/2011 2:39:35 PM PST by US_MilitaryRules (Uhhhh!)
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To: US_MilitaryRules
Man O Man.

What a scene.

19 posted on 11/06/2011 4:29:02 PM PST by blam
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To: US_MilitaryRules

What!? How? Thanks for posting that!
Serious bragging-rights down the pub.


20 posted on 11/06/2011 5:14:39 PM PST by moose07 (Warped humour alert!)
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To: US_MilitaryRules

No, that is an unfortunate high water incident.

I have been on a tow boat, now 3.5 decades ago, passing downstream through Little Rock in high water when a railroad bridge was lowered on us at night. Just about didn’t get stopped and it would have been a disaster for several of us.

Back then it was a game of chicken in lots of places between the railroads and the barge companies.


21 posted on 11/06/2011 6:47:19 PM PST by Sequoyah101 (Half the people are below average.)
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To: LZ_Bayonet
- Overseas demand: Many of the rail shipments going to ports for overseas delivery, with the high oil prices paid making it a cost effective method of transport.

Not a factor. We haven't exported any crude oil in quite some time.

The last crude exports would've been a small amount of Alaskan crude in the late nineties, when there was a glut of oil on the West Coast (1996-99).

Since that time, the only exports have been refined products as follows:

1. Refined products, from Mexican crude, shipped back to Mexico as per purchase agreement.

2. Bunker fuel for shipping (when freighters re-fuel in American ports, it is counted as an export).

3. Refinery coke, which used to be burned by U.S. power plants, but is no longer allowed by the EPA.

One of the big factors in RR shipment of crude is the lack of refinery capacity in the Dakotas, where the Bakken play has become significant. One of the refiners is going to rely on a unit train to ship crude to a refinery at Anacortes, WA -- there being no pipeline to serve those two points.

22 posted on 11/06/2011 7:13:21 PM PST by okie01 (THE MAINSTREAM MEDIA: Ignorance On Parade)
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