NEW YORK, Sept 4 BNSF Railway on Tuesday said it
has expanded its capacity to transport 1 million barrels-per-day
of shale oil from the Bakken formation in North Dakota and
Montana in 2012, a 25 percent increase from a year earlier.
The Forth Worth, Texas-based company expects to use a
quarter of this capacity in 2012. Still, with 88.9 million
barrels of Bakken crude shipped on its rail cars in 2012, it
will witness a nearly 7,000 percent growth since it started
shipping by rail five years ago.
"We see this trend continuing," Dave Garin, BNSF group
president for industrial product, said in a statement.
The company had previously said it would spend $1.1 billion
to buy locomotives, freight cars and other equipment, much of
which would serve North Dakota.
BNSF's network now reaches all major coastal and inland
crude markets, serving 30 percent of U.S. refineries, the
company said. It has 1,000 miles of rail lines in the Williston
basin where the Bakken shale lies and serves eight terminals,
with two more scheduled to come online at the end of this year.
The railroad is investing $197 million on projects like
track surfacing, building two inspection tracks and replacing
121 miles of rail line, among others, in North Dakota and
Railroads are a major means of transporting domestic crude
from the central United States to coastal refineries, as
technology unlocks massive oil reserves while pipeline
Oil output from the Bakken shale in North Dakota alone
reached more than 660,000 bpd in June, after doubling in under