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Month: April 2015

US Oil Boom and Trucking: The Case for Leasing

Crude oil sold at the wellhead in Bakken shale region across North Dakota dipped to $49.7 per barrel on November 28, revealing how geographic and logistical issues can cause disparate prices in areas where new shale plays have pushed U.S. oil product to a 31-year high, reports Dan Murtaugh for Bloomberg.

“You have gathering fees, trucking, terminalling, pipeline and rail fees,” Andy Lipow, president of Lipow Oil Associates LLC, said in the article. “If you’re selling at the wellhead, you’re getting a very low number relative to WTI.”

In comparison, West Texas Intermediate crude oil futures were hovering around $67.3 per barrel Wednesday.

Consequently, in order to turn a profit, more drillers are turning to railways to ship oil to large hubs for distribution. Tank carloads of crude are up 50% so far this year, compared to 2014, according to Pacific Standard Magazine.

However, if crude oil prices continue to weaken, railways may no longer be an option. For instance, in places with limited pipeline capacity, producers have to fill rail cars with crude and pay $10 to $15 per barrel to bring oil thousands of miles or more to the coasts for processing.

“To a producer in Wyoming, if Brent’s $70 then I’m at $50, then I have to start asking does it economically make sense to keep drilling,” John Auers, executive vice president at energy consulting firm Turner Mason & Co, said in the Bloomberg article. “They might start reallocating capital, you might see projects slowed or shut down.”

Transcourt a Tanker leasing company can help reduce capital outlays to support transportation costs through a lease program. Transcourt has locations now in Alberta, Ontario, Quebec and the US. The company provides leases for various tankers including; pneumatic tankers, oil and petroleum tankers and stainless tankers.

Recent trends indicate an uptick in oil and pump prices according to Trucking News. Prices this week in major trucking centers range from 95.5 cents per liter in Edmonton, 97.8 cents in Winnipeg, $1.102 in Kamloops, $1.124 in Toronto to $1.142 in Moncton.

The national average price of regular grade gasoline also followed the same pattern, but increasing even more by 1.7 cents to $1.114 per liter. It is 28.4 cents less than during this week last year.

Meantime, south of the border, the average U.S. cost of on-highway diesel moved higher this week for the second straight week. The U.S. Energy Department reports it increased 3.1 U.S. cents to U.S.$2.811 per gallon. This follows diesel falling for five consecutive weeks, when it lost a total of 19 U.S cents.

This week’s price is still U.S.$1.164 lower than the same time a year earlier.

Diesel now ranges from a low of U.S.$2.683 in the Gulf Coast region to as high of U.S.$3.11 in the Central Atlantic states.

Meantime, the average cost of regular grade gasoline posted an even larger increase than diesel over the past week, 8.5 U.S. cents, registering U.S.$2.57 per gallon, its highest level since early December.

Compared to this time a year ago gasoline is still U.S.$1.143 less per gallon.

The expectation is fuel prices are going to head even higher following reports on Wednesday that both Brent and U.S. crude are at their highest levels in more than four months.

ETF Trends 2014, December 4th, 2014 Tom Loydon

Trucking News April 29th, 2015

Transcourt is reinforcing its presence in Québec

Toronto, April 24th, 1025 – Transcourt Tank Leasing, the Canadian leader in leasing and long-term rental of liquid and dry bulk tank trailers, is presently expanding its activities in the North-American market. This expansion includes efforts to reinforce its presence in Québec as was the case when Transcourt took part in the recent ExpoCam 2015 that was held in Montreal on April 16, 17 and 18, 2015. Last year, as it pushed its market expansion westward, Transcourt opened an office in Calgary. The development of the Québec market is supported by the establishment of a new office in Montreal’s Anjou borough.

“This new office will enable us to cater and better serve our French-speaking clientele and answer the needs of the Québec market whether on a short or long term basis”, explained Bruce Daccord, President and co-founder of Transcourt Tank Leasing. “With our vast fleet that includes a large variety of tank trailers we are certainly well equipped to deliver flexible and customized service anywhere in Canada.”

Within the past three years alone, Transcourt has doubled its business as the tank trailer fleet has grown by more than 30% per year for the past two years to meet the constantly increasing demand. Transcourt certainly isn’t a conventional trailer rental company as it strives to offer business solutions encompassing operational and financial aspects to suit the specific needs of each client, no matter how big or how small the project is.

“Our main goal is to provide a wide variety of equipment from coast to coast and become the supplier of choice when carriers and bulk shippers are looking for a tanker to add to their operations, continued Bruce Daccord.

About Transcourt

Transcourt Tank Leasing was founded in 1997, specifically to meet the leasing and long-term rental needs of the liquid and dry bulk transport industry. Transcourt’s large fleet of tankers is available to customers across Canada. A wide selection of tank trailer configurations is available to a variety of unique industry segments and includes stainless and aluminum tankers, propane btrains and tridems, crude oil and condensate tankers as well as dry bulk trailers.

Expocam 2015
Expocam 2015

Bruce Daccord and John Campbell co-founders of Transcourt Tank Leasing
Bruce Daccord and John Campbell co-founders of Transcourt Tank Leasing

Source:Vianna Murday
Transcourt Tank Leasing
905-338-5744
vmurday@transcourt.com

Tips for filling liquid tankers

The following are key tips required in the filling of Liquid Tankers. To prevent creating a hazardous atmosphere, filling must occur only outdoors in well-ventilated and well- illuminated areas. A properly designed overhead cover is permissible.

While filling, the tanker shall be stationary and should be level. If a trailer is loaded on scales, the levelness and materials of the loading area are usually covered by local or regional requirements for measuring systems.

The system shall be designed to rapidly and safely interrupt the flow of cryogenic liquids for either safety or normal process reasons.

During periods of inactivity, the storage system design (equipment and piping) should not build and store pressure significantly above its normal operating pressure. The system should be designed to prevent contamination of the plant piping or product transfer system from occurring and to ensure storage product integrity when the equipment is idle between tanker fills.

Fill personnel should visually monitor fittings and hose connections to verify that they do not leak during filling operations. Leaking fittings for LIN (Nitrogen in a cryogenic liquid state) and LAR (Liquid Argon in a cryogenic liquid state) can be tightened during filling operations. If LOX (Oxygen in a cryogenic liquid state) fittings and hose connections are observed to be leaking, the filling operation should be shut down and the leaking fitting should be tightened using non sparking tools as appropriate.

This article has been brought to you by Transcourt, for more information on Liquid Tanker Leasing, please do not hesitate to call.