Petrobakken Shipping Oil by Rail on Limited Pipeline Space
PetroBakken Energy Ltd. (PBN) is shipping crude by rail this week because of limited pipeline space, said Rene LaPrade, a senior vice president at the company.
“We are having problems now with the Spearhead line” so crude is backed up, LaPrade said during a presentation at the Bakken Product Markets & Takeaway Capacity 2012 conference in Denver.
The company will ship about 5,000 cubic meters, or about 31,400 barrels, of crude in February by rail, said Andre Giesbers, the company’s marketing manager.
Enbridge Inc.’s Spearhead pipeline, which transports mostly heavy Canadian oil from the Chicago area to Cushing, Oklahoma, was 76 percent apportioned for February. Nominations were 737,500 barrels a day, and calculated capacity is 173,600.
“For us it isn’t a lot of crude, but it is going to hurt our bottom line,” said LaPrade. “Consistent capacity is really something that needs to be addressed,” he said.
Petrobakken produces between 22,000 and 23,000 barrels a day, according to Giesbers.
To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net
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