Washington state rail bill could redirect 150K bbl/day of Bakken oil shipments

|About: Continental Resources, Inc. (CLR)|By:, SA News Editor

Washington state lawmakers may soon approve a bill which could put 150K bbl/day of Bakken crude at risk of being moved through the state, potentially causing a major adjustment in domestic crude flows, S&P Global Platts reports.

The bill, which has passed the state senate and now awaits House approval, sets new vapor pressure limits for Bakken crude shipped through the state, prohibiting a facility from loading or unloading any crude from a rail tank car unless the oil has a vapor pressure of less than 9 psi.

The director of North Dakota's Department of Mineral Resources says there is no scientific basis to support a vapor pressure limit of 9 psi, and if the current bill becomes law in Washington state, "crude oil will no longer come there from North Dakota. It will find another home because it would be devalued."

More than 90% of crude-by-rail shipments through Washington state are carrying light crude from North Dakota, and 12% of North Dakota's total production was shipped by rail through Washington during 2018.

Leading Bakken producers include CLR, WLL, HES, OAS, XOM, EQNR, EOG, QEP, MRO, WPX, ERF

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