PBF Energy, Delaware City, DE
With last week's news about the record-setting level of crude oil inventory coupled with weak employment data from the Dept. of Labor it was reasonable to expect those factors to help keep gas prices from rising...
But for consumers in the northeast there's more news that should be a positive influence where retail gas prices are concerned.
Back in March we reported on the crude from Western Canada reaching many new markets by rail, specifically, California, via the BNSF Railroad... Now we can tell you it's making its way east too, all the way up through the New England region!
How is it getting there? PBF Energy signed an agreement on April 10 with Continental Resources Inc. to supply PBF refineries with Bakken crude which will be delivered by rail to PBF's double-loop track at its refinery in Delaware City, DE and to additional facilities in Paulsboro, NJ.
Experts say the Canadian crude is already reaching terminals in Vermont and Maine and keeping prices considerably lower than the gasoline that had been refined from Brent crude.
Continental Resources is the largest producer and leaseholder in the Bakken oil region of N. Dakota with significant supply arrangements with refiners in the West Coast and the Gulf Coast. With its PBF agreement, it now adds the East Coast to that list.
According to Rick Bott, Continental's president and chief operating officer, "This unique transaction illustrates the emerging shift in the light sweet crude market. In addition to diversifying Continental's customer base, it allows us to deliver unblended premium Bakken crude to the East Coast -- a market that historically has been driven by imports of foreign (Brent) oil."
PBF's CEO Tom Nimbley said his company has "made significant investments in acquiring rail cars and developing East Coast rail delivery infrastructure to increase access to North American crude oil..." and consequently provides a competitive advantage versus northeast refiners who rely on third parties to deliver North American crude oil."
It's especially welcome news in Vermont where Senator Bernie Sanders has been a watchdog on gas prices, investigating wholesalers and retail pricing irregularities.
... all good news for motorists on the East Coast!