Why Delta Went All-In for Bakken

By Staff Report | March 28, 2013

Delta Air Lines Inc., is an official player in the Bakken. The company has already railed its first shipment of Bakken crude to its Trainer, Pa., refinery. And, starting in June, the airline will offer daily flights from Dickinson to Minneapolis. When the company announced its first Bakken shipment, Gov. Jack Darlymple offered his perspective. “More and more, U.S. companies and East Coast refineries are turning to North Dakota’s burgeoning energy industry as a solution for cost savings and saving jobs,” he said.

The governor couldn’t be more right. Delta believes Bakken crude, typically traded at a $20 per barrel discount to Brent crude oil, will lower the company’s all-in fuel costs from $3.24 per gallon to a price between $3.15 and $3.20 per gallon. A New Jersey refinery operated by Phillips 66 is also tapping into Bakken oil. Through a five-year contract, Global Partners LP will rail 50,000 barrels of crude to New Jersey per day.