GREY:CLLZF - Post by User
Comment by
strzelinon Jan 14, 2013 11:23pm
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Post# 20837869
RE: STP $/BBL/Gasmen/Rusty
RE: STP $/BBL/Gasmen/Rusty How would STP getting ~$100/bbl for it's oil by rail?
You are right Gasman. I think Rusty confused the Dilbit with the Bitumen.
STP hopes to sell their Dilbit in Louisiana at Castilla Blend Benchmark Prices which is currently quoted at ~$98.1/bbl. Their transportation system (Trucking - Rail - Barge) cost is high and quoted at $31/bbl. If all goes as plan STP may get about $65/bbl for their Dilbit (after transport) or ~ $45 to $50/bbl for their Bitumen at the wellhead.
$45 is not a bad price but not a $100 as suggested by Rusty. If the differential normalized as expected in Q2/3 2013, STP will be stuck with the 5 years transportation contract cost. Hopefully STP management made a right bet.
"Southern Pacific estimates it will pay $31 a barrel to move its product to a Louisiana refinery compared with $8 for pipeline shipping if that was available."