(April 6, 2014 – Bakken Today) Refineries gaining steam: Capacity a ‘drop in the ocean’ compared to ND output (By: Amy Dalrymple)
Read the full story: http://www.bakkentoday.com/event/article/id/36490/publisher_ID/82/
WILLISTON — While the United States hasn’t seen a new refinery in more than 30 years, North Dakota has five refineries proposed that range from planning stages to active construction....
...Refining more crude oil in North Dakota means less oil will need leave the state by rail or pipeline.
But the difference in transportation likely won’t be noticeable even if all five refineries are constructed, said Sandy Fielden, managing director of energy analytics at consultant firm RBN Energy.
‘Only in North Dakota’ Each refinery would process 20,000 barrels of oil per day, and the byproducts would still need to be transported for further refining. A unit train transports about 65,000 to 70,000 barrels of oil, with North Dakota currently sending about 10 unit trains out of the state each day.
“These refineries are tiny. That’s a drop in the ocean compared to production,” Fielden said. “It’s not going to make much difference.”…
…Building refineries in North Dakota makes sense economically, given the amount of crude oil in and the demand for diesel, Fielden said. But the costs for several of the projects are estimated in the $250 million to $350 million range.
“They’re quite large investments, so the investors in those kinds of infrastructure typically are pretty concerned to make sure there’s good demand for the output,” Fielden said.
The last major refinery built in the lower 48 states of the United States began operating in 1977 in Garyville, La., according to the U.S. Energy Information Administration.
