Bakken Oil Logistics

Please click here for a complimentary copy of our Bakken Oil Logistics Study.

The report reviews how Bakken development has altered traditional crude oil economics as the rapid increase in supply is constrained by logistics. In this report, we review the current production sources, transportation paths, bottlenecks and future markets.

  • Bakken Discount - The light, sweet Bakken crude trades at a discount to the Louisiana Light Sweet Index due to a lack of pipeline infrastructure to deliver crude to the traditional trading hubs of Cushing, OK and St. James, LA
  • Infrastructure Development - Railroads have quickly deployed loading track to  transport Bakken crude to trading hubs, river terminals and refineries while pipeline development is slowed by regulatory approvals
  • Transition Opportunities - Producers, midstreamers and refiners can partner to deploy logistics solutions to work around the bottleneck capacity
  • Rail Shipping Best Practices - Understanding the dynamics between Class 1 railroads can help avoid some of the friction that is caused when carriers compete on routes

The report also reviews the recent STB complaint that BNSF and Musket filed against Union Pacific. As carriers compete for a share of the route, friction like this will continue to happen. Fuel transport buyers can maximize their leverage by choosing transfer points that do not allow a particular carrier to dominate the entire route. This sets up a healthier relationship between carriers as all parties have the same incentive to swiftly move the freight.