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Published June 20, 2013, 02:14 PM

North Dakota sees record oil shipments by rail

BISMARCK, N.D. (AP) — The percentage of North Dakota oil shipped by pipelines has slipped in the past year as producers preferred rail to reach coastal U.S. refineries that pay premium prices based on foreign crude.

BISMARCK, N.D. (AP) — The percentage of North Dakota oil shipped by pipelines has slipped in the past year as producers preferred rail to reach coastal U.S. refineries that pay premium prices based on foreign crude.

But North Dakota Petroleum Council President Ron Ness says pipelines will carry more crude as the price differential narrows between domestic and overseas oil.

North Dakota Pipeline Authority Director Justin Kringstad says rail shipments made up three-fourths of the record 794,000 barrels of oil produced daily in April.

Producers have been sending the bulk of the state's oil by rail to more lucrative markets that feed refineries on the West, East and Gulf coasts. But West Texas intermediate crude priced at Oklahoma's Cushing pipeline hub is becoming more competitive with Brent crude that's used to price foreign oil.

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