"It will cost uncommitted customers $7.50/b to move Bakken crude from one of several field points to Nederland, Texas, according to Energy Transfer’s tariff filed in mid-April filing with the US Federal Energy Regulatory Commission. That’s below the roughly $9/b cost of shipping by rail."
"Ten-year committed rates from the Bakken to Texas range from $5.50/b for more than 90,000 b/d to $6.25/b for 5,000-29,999 b/d."
What is a little surprising (to me anyway) is the rise in crude exports of oil (w/e May at 1.303 Mmbopd) and particularly to Asia ("traders at South Korean refining companies have said Bakken is a distillate-rich low sulfur crude that could comfortably feed into Asian distillation units, but arbitrage economics had always been difficult due largely to hefty transportation and logistics costs.")
Also implied in the article was some US refineries potentially being able to use more of the light sweet crude of the Bakken for domestic refining. So that's 2 "newish" sources of incremental demand
A producer in the Williston Basin, who did not wish to be identified, said Thursday start-up of Dakota Access will result in higher netbacks. In 2014, the company had to sell its crude oil at a discount of about $9.6/b to the WTI. That narrowed last year to $4.13/b and today its $2.96/b, it said.
You're getting help TB from macro forces ... now its up to you to get the micro forces under your control into line ... what's going on with the produced water volume and disposal cost (better not be negative in the June Qtrly).
SSN Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
