North Dakota oil relies on rail for delivery

Oct. 16, 2013 at 8:58 AM

BISMARCK, N.D., Oct. 16 (UPI) -- North Dakota officials said they expect regional markets to be able to receive the state's crude oil as long as rail deliveries increase.

The North Dakota Industrial Commission of the Department of Mineral Resources said oil production in August, the last month for which data is available, was a record 911,242 barrels a day.

The NDIC said producers were operating at a higher level. The U.S. Geological Survey estimates parts of North Dakota may contain as much as 7.4 billion barrels of oil.

NDIC Director Lynn Helms said Tuesday "crude oil take-away capacity is expected to be adequate as long as rail deliveries to coastal refineries keep growing."

Pipelines aren't enough to keep up with North Dakota oil production. The Association of American Railroads says crude oil delivery by rail has increased steadily in the past year.

The NDIC made no mention of a the 20,000 barrels of oil spilled from a crude oil pipeline in September.

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