Tesoro Anacortes is making its second bad decision .(the first of course was canceling its Coking project to put funds towards its Tesoro GEagle coker project cost doubled 2006-11 cycle and could only afford one, much like COPs Ferndale) by chosing a short term Bakken Railed crude project over looking at increased P/L deliveries of Canadian Syncrude Blends that better fit the displaced ANS crude.
While it is true that currently Bakken sweet crude is higher discounted from ANS due glut problems with WTI & other Cushing Okla delivered crudes. But the rail option eats $8-12/Bbl of that discount but .. mid 2012 to first half 2013 when either the reversed Enbridge Seaway (previously COP) Pipeline is reversed or the Obama stalled TransCanada/Keystone XL Pipeline gets its final approval moving crude to USGC. The +40MBD rail movements of crude previously destined to Cushing storage glut has already dropped the +$20/Bbl discounts to Breakeven rail cost of $8-12/Bbl and either of these lines moving inital +150 to 400 MBD more crude will likely cut that discount even further. <see coking.com post Rails not P/L solve twisted US (WTI Cushing ) crude mkt http://www.coking.com/Forum/tm.asp?m=5526 >
Tesoros 3rd bad decision is of course unloading its refinery assets like Hawaii plant (one of only 2 refineries on island).
Regards