HOUSTON (Reuters) - BNSF Railway Co’s North Dakota Bakken crude shipments are rebounding on lower U.S. crude prices after shrinking in recent months when they rose, Chief Executive Matt Rose said on Thursday.
He expects the largest U.S. railroad’s crude shipments to approach 700,000 barrels per day by year-end, after falling below 600,000 bpd. The railroad, owned by Warren Buffett’s Berkshire Hathaway (BRKa.N), last spring had expected higher growth this year, but the pullback slowed it down.
Longer term, he expects growth to continue despite volatility as Canadian and U.S. production rises and refiners and logistics companies build more offloading infrastructure to get it by rail - particularly on the East and West coasts.
“We think by the end of this year we’ll be closer to 700,000 barrels per day, so we’ll kind of hit back to where we were for that short period of time in the spring this year,” Rose told the Reuters Global Commodities Summit.
Reporting By Kristen Hays and Ernest Scheyder in New York; Editing by Terry Wade