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| Re: Frack sand traffic (1329098) | |||
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Re: Frack sand traffic |
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Posted by WillD on Fri Dec 19 16:56:39 2014, in response to Re: Frack sand traffic, posted by Broadway Lion on Fri Dec 19 16:40:30 2014. It will NOT reduce the traffic so long as we use oil.We may not be using North Dakota's oil for much longer if the Saudis have their way. This way BNSF reduces congestion of lower margin sand and oil shipments, and as you say, funds infrastructure improvements. Besides, MONEY is not the limiting factor in the oil business, Rail Capacity is. No, it's money. Shale oil is fairly high cost, both at the wellhead and for the refiner. If the Saudis drive the price of oil below the cost to produce Bakken shale oil, then those wells will close down, or at least we'll see a reduction in the drilling of new wells. North Dakota's bubble will burst, and BNSF's freight between Seattle and Chicago will go back to being the primary rail user in the area. |
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