By April 26, 2017 0 Comments Read More →

Bakken crude ships to Asia for the first time, more after DAPL complete

Bakken crude

Bakken crude was loaded onto the Maran Canopus, a very large crude carrier (VLCC) in Louisiana for transport to Singapore in late March. FleetMon.com photo.

Bakken crude shipped from Louisiana port

The first shipment of Bakken crude to Asia left a Louisiana port late last month, which is expected to be the first of many cargoes once the Dakota Access Pipeline starts transporting oil in May.

According to shipping documents seen by Reuters, Swiss-based Mercuria Energy Trading S.A. loaded over 600,000 barrels of Bakken crude along with some Mars Sour crude on March 29 onto the very large crude carrier Maran Canopus.

The 96 per cent full VLCC was destined for Singapore.

Reuters says it spoke to at least two Asian refiners that are interested in light crude from the Bakken because of the end-products possible through refining.

“There seems to be increasing demand for light quality crude in Asia,” said Michael Cohen, head of energy commodities research at Barclays told Reuters. “I think with Dakota Access coming online, it makes the pipeline route from the Bakken to the Gulf Coast more economical.”

Upon completion of the 470,000 b/d DAPL, Bakken producers including Hess Corp and Continental Resources will have a direct route to export terminals on the Gulf Coast and the world.

“As DAPL opens up supply of Bakken crude to the U.S. Gulf Coast, we are looking at potential exports to customers in South America, Europe and Asia,” Lorrie Hecker, a spokeswoman for Hess told Reuters.

Some analysts are concerned that a boom in the Bakken could mean already high US crude production could become even higher at a time when OPEC and non-OPEC countries are looking to reduce global inventories.

 

 

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