West Coast Refiners Putting Their Faith In Crude-By-Rail

摘要

Tesoro's US$100mn rail-to-barge oil port could be an important step in bolstering sources of domestic feedstock to refineries along the US' west coast – a region which, given its lack of pipeline infrastructure – has not benefitted to the same extent from the country's unconventional hydrocarbon boom. However, we caution that if we were to see sustained upward pressure on Bakken crude oil prices or a lack of access to Canadian heavy crudes – necessary to mix with Bakken crude – it is not guaranteed that this sourcing method will remain attractive to West Coast refiners.