Skip to comments.NDís railed oil capacity jumps 55 percent in June
Posted on 06/19/2012 5:17:10 AM PDT by thackney
North Dakota s capacity to export crude oil by rail has jumped about 55 percent in June.
The increase comes with two new loading facilities in western North Dakotas oil patch.
Musket Corp. increased capacity at its crude-to-rail facility at Dore from 10,000 barrels to 60,000 barrel per day.
Is this Warren Buffets Railroad? It would make sense for him to benefit from the obstructed Keystone pipeline. I still say use the Alaskan Model and build it. States and the voters would be chomping at the bit to build it, environment be d@mmed.
I don't see how the Alaskan Pipeline is a model for the Keystone XL pipeline.
I have heard that the break even point in North Dakota is about $60 per barrel. I also hear that is not sweet crude. With today’s prices and the transportation cost is it economical?
It’s very simple. The proceeds from the pipeline are divided and paid annually to Alaskan citizens. I am not sure how this is calculated, but I could find out for ya. I am sure the state has a piece carved out as well. Back in the early 90s that was three thousand dollars. Alaskans Heart the pipeline! It is the perfect model, let the folks who work on it and give up property for it benefit. Not a politician in the country could justify voting against the people. It’s not free money either, it’s simply smart. No one has the canards to do it.. too much soy in our diets.
Bakken is a Light Sweet Crude
> 31 API
< 1 0% Sulfur
Epping is a BNSF rail location. I could not find the other point on the map. The BNSF and CPRS are the only railroads that serve North Dakota. However, the CN railroad runs within 30 miles of the border in SK.
No, you are confusing the pipeline with the mineral rights.
The mineral rights are owned by the governments, either State, Federal or Native Village Corporation.
The State owned mineral rights are split with state government expenditures and the remaining portion is deposited into a state owned fund called the Permanent Fund. The dividend from this fund is averaged over 5 years and half is split with the residents. Most of the income, ~80%, is from the investment of the fund into stocks, bonds, etc. About 20% is from the oil royalty today.
The pipeline is a joint venture by the oil companies. No revenue from the pipeline goes to the residents.
Even light sweet crude is going to be marginal with transportation costs, gross production tax, and royalty payments at the current approx $80. The Keystone is badly needed up there.
No, it wasn't.
More info at:
Alaska Permanent Fund Corp
I lived in Alaska. I collected from the Fund. I worked on pipeline and North Slope Oil Field facilities.
I think it is more accurate to say “environmentalists” be d*mned. The actual environment will be just fine.
Yep, this is buffet’s payoff. He makes big money by rail transport of the oil rather than pumping it by way of the pipeline.
He’s another of our our own homegrown oligarchs who will command our economy and eat steak while the rest of us queue up at the bare shelves of the government food store.
Rich democrats know better than the rest of us.
FUBO & FAD
Regardless of the amount... it is still the best model in existence to push any pipeline. Even if it were 100 dollars per citizen, that causes folks to be vested in it. I was probably adding my husbands and mine together since they went into the same IRA. Then the two kids... so that was what.. close to six thousand dollars? Now who will stand up and present it to their state like that? Would also work for ANWAR, but I think the politics of Alaska have changed.
Have you run across any reliable numbers on what the rail freight bill is from ND to the Gulf Coast?
I think you need to read my posts again. The amount via the pipeline is ZERO. You are confusing the ownership of the oil with the movement of the oil. That is why Keystone XL does not compare to the "Alaska Model".
Would also work for ANWAR, but I think the politics of Alaska have changed.
Since ANWR mineral rights are owned by the federal government, not the state of Alaska, I don't see how they compare.
I am admittedly an idiot. Thanks for confirming.
My number is not reliable, but seems as though I sort of remember seeing about $6 per bl. to the east.