New rules for trains hauling crude oil are under consideration by North Dakota’s Industrial Commission. The proposed changes would require companies to remove certain liquids and gases from crude oil before loading it into railcars.
Alon USA Energy, Inc., has been granted approval from the Kern County (CA) Board of Supervisors to build a rail terminal in Bakersfield, CA. The rail terminal will primarily receive shipments of unprocessed crude oil from Canada, North Dakota and Colorado. Alon CEO Paul Eisman believes the complex is capable of attracting supplies from as far as Texas if current production levels remain. Unloading capacity at Alon’s refinery will be 150,000 barrels of oil a day (b/d) and any oil that is not stored at Alon’s terminal will be shipped via pipeline to other plants in the state.
The Federal Railroad Association (FRA) announced two grants totaling $350,000 to aid in the development of a Short-Line Rail Safety Institute. U.S. Senators Patty Murray (D-Wash.) and Susan Collins (R-Maine) made the announcement and have been proponents of the formation for a Short-Line Rail Safety Institute.
It’s no secret that the Shale Oil & Gas Boom is being driven by accessible energy that was once thought unreachable. Looking at data from PacWest on wells frac’ed per quarter and Baker Hughes on wells spud per quarter, we can see that about 75% of the wells spud in the U.S. are now receiving hydraulic fracturing treatment.
The Wall Street Journal recently reported that the largest new oil-storage facility along the Texas Gulf Coast is slated for construction in Houston, TX. The designer/builder has been identified as Houston-based Haddington Ventures LLC. Haddington is a midstream oil and gas investment firm and is currently offering to sell a majority stake in the Pierce Junction crude oil storage project. RBC Capital Markets has been hired by Haddington to find a purchaser of the stake. Majority control is expected to sell for a maximum of $200 million.