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BNSF hikes Williston takeaway capacity
BNSF Railway said it has raised its Williston basin takeaway capacity to 1 million barrels per day in response to rising demands from oil producers in North Dakota and Montana.
Dave Garin, BNSF group vice president for industrial products, said in an early September statement that the company has seen its handling volumes increase over the past five years to 88.9 million barrels this year from 1.3 million barrels in 2008 and expects the trend to continue.
He said BNSF is committed to serving “this growing market.”
John Lanigan, BNSF executive vice president and chief marketing officer, said that because shale development growth occurred so quickly “there has been a shortage of pipeline capacity to deliver production from new unconventional sources to coastal refiners.”
Hired more than 560 people The company reported it has spent $197 million in 2012 on projects in North Dakota and Montana, including 2,188 miles of track surfacing, two new inspection tracks, raising track at Devil’s Lake, replacing 121 miles of rail and about 332,000 rail ties, upgrading signals and buying equipment.
The railway said it has also hired more than 560 employees to fill existing and newly created positions in the two states.
Formed Unit Energy Desk As well, BNSF has formed a dedicated Unit Energy Desk to work directly with customers to help co-ordinate and plan unit train movements to and from the Williston Basin, offering customers a single-source point of contact.
The U.S. Energy Information Administration said the volume of crude and products carried by rail rose by 38 percent in the first half of 2012 because of restricted pipeline capacity in the Bakken region.
Data from the Association of American Railroads quoted by EIA said deliveries increased 51 percent in June over the previous year to 42,000 tanker cars – or about 27 million barrels – setting an average weekly high in June of 10,500 tanker cars.
—Gary Park
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