Vapor Pressure

Refineries in Washington state have been reliable buyers of Bakken-sourced crude oil during the Shale Era, receiving an average of about 145 Mb/d — all of it by rail — over the past two-plus years. But a newly approved Washington law slashing the allowable vapor pressure limit for crude being unloaded from rail tank cars could hinder future growth in crude-by-rail shipments from North Dakota to the Evergreen State, or force Bakken producers to remove more butane and other “light ends” from the crude oil they rail west. It’s such a big deal that the state of North Dakota has indicated it will file suit to kill the new law. Today, we discuss Washington’s new law and its potential effects on Bakken crude oil producers.

A study released yesterday (August 4, 2014) by the North Dakota Petroleum Council (NDPC) details the final results of work they commissioned to extensively sample and test North Dakota crude oil. The goal was to establish the quality characteristics of Bakken crude oil to determine if it is more risky to transport by rail than other crudes. The results show Bakken crude to be similar to other light sweet crudes, to be consistent across the producing region and that it meets all the current hazardous materials transportation requirements. Today we review the report’s findings.