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4/10/2013



Rail News: Rail Industry Trends

PBF Energy to rail Continental Resources' crude from the Bakken to Delaware


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PBF Energy Inc. today announced it signed an agreement with Continental Resources Inc. to supply Bakken crude oil, which will be delivered by rail to PBF's double-loop track at its Delaware City, Del., refinery.

The contract provides Continental Resources — the largest producer and leaseholder in the Bakken Shale — with a supply arrangement involving an East Coast refinery, PBF officials said in a press release. Continental Resources currently has supply deals in place on the West and Gulf coasts.

"This unique transaction illustrates the emerging shift in the light sweet crude market," said Continental Resources President and Chief Operating Officer Rick Bott. "In addition to diversifying Continental's customer base and streamlining our value chain, it allows us to deliver unblended premium Bakken crude to the East Coast — a market that has historically been driven by imports of foreign oil."

PBF has been acquiring rail cars and developing East Coast rail delivery infrastructure to increase its access to North American crude oil, said PBF Chief Executive Officer Tom Nimbley.

"Delaware City's heavy and light crude rail discharge facilities allow us to work directly with producers in Canada and the mid-continent, and provide us with a competitive advantage versus northeast refiners that rely on third parties to deliver North American crude oil," he said.

PBF also announced that it opened a new office in Oklahoma City, which along with a Calgary, Alberta, office will focus on sourcing North American crude for its refineries.


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