(Updates with speaker’s comment in second paragraph.)
Feb. 1 (Bloomberg) -- Eagle Ford crude production in the U.S. Gulf Coast may back out some demand for oil from the Bakken formation in North Dakota, said Tyler Radcliffe, vice president of supply and facilities at Trafigura AG.
“It will have a significant impact on the Bakken in the Gulf going forward,” Radcliffe said during a presentation at the Bakken Product Markets & Takeaway Capacity 2012 conference in Denver. “The Gulf is the logical destination for that Eagle Ford.”
Oil production from North Dakota surged to 510,000 barrels a day in November. Production from the Eagle Ford in Texas was 150,000 barrels a day in 2011 and is projected to climb to 470,000 in 2015, Harold “Skip” York, a Houston-based vice president at Wood Mackenzie Ltd., a research and consulting firm, said Jan. 26.
“This influx of light supply will decrease our need to bring in Bakken with a higher transportation cost,” Radcliffe said. “You will start to see some of that demand backed out, other than the take-or-pay commitments that may be in place on rail.”
Trafigura is a commodity trading company based in Switzerland.
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