In this week's news update, a new oil refinery is dedicated near Dickinson, and the largest frac sand shipment ever sets a new record

The oil industry broke a record in the Eagle Ford shale on July 4 when Unimin Energy Solutions, Union Pacific Railroad and Twin Eagle Sand Logistics moved the largest shipment of frac sand by rail in U.S. history.

The 140-car train arrived at Twin Eagle’s facility at the Mission Rail Park in Elmendorf, Texas, on July 4. The facility regularly receives trains with 130 railcars filled with frac sand.

The 140-car train was powered by four diesel engines and measured 6,200 feet long. Unimin Energy Solutions General Sales Manager Rob Ricker says the shipment helps drive cost out of the supply chain.

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Recent industry reports show that new drilling and general demand for frac sand is down, but the amount of silica used per well on the remaining shale oil and natural gas drilling sites is increasing.

Hess, Global Infrastructure Partners Finalize Midstream Deal

Hess Corp. announced the completion of its $2.675 billion sale of a 50 percent interest in its Bakken midstream assets to Global Infrastructure Partners on July 8.

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The deal created a midstream joint venture dubbed Hess Infrastructure Partners.

“The joint venture with its strategically located assets will be one of the largest midstream operations in the Bakken,” John Hess, CEO of Hess Corp. said in a statement. “By capitalizing on the financial strength and midstream energy experience of Global Infrastructure Partners, the joint venture will be in strong position to fund future energy infrastructure investments and continue to grow its midstream business.”

New Refinery Dedicated in North Dakota

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Officials in North Dakota dedicated a new oil refinery near Dickinson on July 1, built by Bismarck-based MDU Resources Group and Indianapolis-based Calumet Specialty Products Partners.

The $430 million Dakota Prairie Refinery can process 20,000 barrels of oil each day into diesel fuel and other products.

Crews broke ground on the refinery in March 2013 and began selling the fuel in May of this year.

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