Crude oil transportation costs
The price for shipping oil using tankers varies. The cost for oil tankers in 32,000-45,000 DWT is US$43 million, while the 80,000–105,000 DWT costs $58 million. 250,000–280,000 DWT oil tankers rakes in $120 million for shipping oil. Moreover, tankers cost $40K-$70K per day for shipping 250k-2000k barrels. Amid declining oil prices, CNBC reports that “The average daily fuel cost to operate a VLCC has fallen from over $75,000 to under $18,000.” Though this decline in oil prices help crude tanker companies lower operation costs, the benefits are often negated in contract negotiations with customers. In its November Short-Term Energy Outlook (STEO), EIA forecasts the price difference between West Texas Intermediate (WTI) crude oil priced at Cushing, Oklahoma, and Brent, the global crude oil price benchmark, to remain at $6 per barrel (b) While the policy debate surrounding crude oil transportation costs has emphasized accidents and spills, a new study indicates the debate is overlooking a far more serious external cost -- air pollution and greenhouse gas emissions. Crude oil lines are considered either “gathering” or “transmission,” and the liquid petroleum category can be broken down into lines carrying crude, refined products, highly volatile liquids (HVL) and carbon dioxide (CO2). Rail – For long distance crude oil transportation and refined products, rail is a rapidly growing industry. A A Credit Suisse research team shared a map showing the transport differentials for oil across the US. It's more expensive to transport by rail than by pipeline. The cost of crude oil is the largest component of the retail price of diesel fuel. The cost of crude oil accounted for about 54% of the monthly average U.S. retail on-highway diesel fuel prices from 2009 through 2018. Worldwide demand and supply determines crude oil prices.
14 Aug 2018 They argue that “crude-by-rail may be an attractive transportation option in spite of its higher costs.” The researchers focused on the Bakken shale
Crude oil prices & gas price charts. Oil price charts for Brent Crude, WTI & oil futures. Energy news covering oil, petroleum, natural gas and investment advice Over-the-road transportation is the most expensive and inefficient means of crude oil transportation. The amount of crude oil an average truck can transport is only between 200-250 barrels of oil per movement. The Congressional Research Service estimates that transporting crude oil by pipeline is cheaper than rail, about $5/barrel versus $10 to $15/barrel. But rail is more flexible and has 140,000 miles of track in the United States compared to 57,000 miles of crude oil pipelines. (For more, see "Oil Prices' Impact On Oil Transport Sector.") Along with oil supply, geopolitical developments also play an important role in the crude tanker business. Crude oil prices vary with supply and demand – in the last 20 years from a low in 1998 of $10+ to $150 per barrel recently. Inflation-adjusted crude is about $25 per barrel We approximate that the part of the diesel fuel price that comes from crude is “crude price divided by 42 gallons per barrel plus about $0.04 per gallon” The transportation of heavy and extra-heavy crude oils from the head-well to the refinery is becoming important since their production is currently rising all over the world. Such oils are characterized by a low API gravity (< 20) and high viscosity (> 10 3 cP at 298.15 K) that render difficult oil flow through pipelines. Both Clay and Kellogg said that if the true cost of oil-by-rail was calculated into the fees that oil shippers are charged, the economics of oil transport might change. Kellogg’s paper predicted that baking the cost of railroad air emissions into shipping prices would raise CBR costs by $2 a barrel.
The cost of crude oil is the largest component of the retail price of diesel fuel. The cost of crude oil accounted for about 54% of the monthly average U.S. retail on-highway diesel fuel prices from 2009 through 2018. Worldwide demand and supply determines crude oil prices.
Trucks, Trains, or Pipelines – The Best Way to Transport Petroleum The U.S. is the most fully developed petroleum transport nation – we have crude oil, natural gas, gasoline, and diesel
14 Aug 2018 They argue that “crude-by-rail may be an attractive transportation option in spite of its higher costs.” The researchers focused on the Bakken shale
OK, a little reality check. A typical crude oil tank car might be 32,000 gallons. A crude oil train could be a 100 or 100s of cars, say 100 for 3,200,000 gallons. Crude oil prices & gas price charts. Oil price charts for Brent Crude, WTI & oil futures. Energy news covering oil, petroleum, natural gas and investment advice Over-the-road transportation is the most expensive and inefficient means of crude oil transportation. The amount of crude oil an average truck can transport is only between 200-250 barrels of oil per movement. The Congressional Research Service estimates that transporting crude oil by pipeline is cheaper than rail, about $5/barrel versus $10 to $15/barrel. But rail is more flexible and has 140,000 miles of track in the United States compared to 57,000 miles of crude oil pipelines.
OK, a little reality check. A typical crude oil tank car might be 32,000 gallons. A crude oil train could be a 100 or 100s of cars, say 100 for 3,200,000 gallons.
(For more, see "Oil Prices' Impact On Oil Transport Sector.") Along with oil supply, geopolitical developments also play an important role in the crude tanker business. Crude oil prices vary with supply and demand – in the last 20 years from a low in 1998 of $10+ to $150 per barrel recently. Inflation-adjusted crude is about $25 per barrel We approximate that the part of the diesel fuel price that comes from crude is “crude price divided by 42 gallons per barrel plus about $0.04 per gallon” The transportation of heavy and extra-heavy crude oils from the head-well to the refinery is becoming important since their production is currently rising all over the world. Such oils are characterized by a low API gravity (< 20) and high viscosity (> 10 3 cP at 298.15 K) that render difficult oil flow through pipelines. Both Clay and Kellogg said that if the true cost of oil-by-rail was calculated into the fees that oil shippers are charged, the economics of oil transport might change. Kellogg’s paper predicted that baking the cost of railroad air emissions into shipping prices would raise CBR costs by $2 a barrel. The EIA’s (Energy Information Administration) 2009 report shows the production cost of crude oil was ~$12 per barrel for the United States and ~$10 per barrel for the Middle East. But recent consensus says these costs could range from $20 to $25 per barrel.
These costs can dramatically change the overall economic impact of the entire sector in the region. ✓ In terms of emissions, transporting crude oil across the 14 Aug 2018 They argue that “crude-by-rail may be an attractive transportation option in spite of its higher costs.” The researchers focused on the Bakken shale The cost to transport crude oil or petroleum products by pipeline is a fraction of the cost of other modes of transportation. The cost to ship crude oil by rail is generally $10 to $15 per barrel versus under $5 per barrel by pipeline. The price for shipping oil using tankers varies. The cost for oil tankers in 32,000-45,000 DWT is US$43 million, while the 80,000–105,000 DWT costs $58 million. 250,000–280,000 DWT oil tankers rakes in $120 million for shipping oil. Moreover, tankers cost $40K-$70K per day for shipping 250k-2000k barrels. Amid declining oil prices, CNBC reports that “The average daily fuel cost to operate a VLCC has fallen from over $75,000 to under $18,000.” Though this decline in oil prices help crude tanker companies lower operation costs, the benefits are often negated in contract negotiations with customers. In its November Short-Term Energy Outlook (STEO), EIA forecasts the price difference between West Texas Intermediate (WTI) crude oil priced at Cushing, Oklahoma, and Brent, the global crude oil price benchmark, to remain at $6 per barrel (b)