Question-and-Answer Session
Operator
Thank you. (Operator Instructions) And our first question is from the line of Joe Allman with J.P. Morgan. Please proceed.
Joe Allman - J.P. Morgan
Thank you, good morning, everybody.
Jim Volker
Good morning, Joe
Joe Allman - J.P. Morgan
Hi, Jim, you are producing somewhere around 13,000 barrels of oil from the Bakken, could you tell us why you're moving that and how much is through pipe and how much through rail and truck and what not, what do you think with differentials recently.
Jim Volker
Thank you for asking. It's all being trucked and we believe by the time we get no later than the end of the third quarter of this year, most of it will be in the pipeline, the differential there for us is currently $7.50. And it's come down obviously markedly from it was almost $18 during the worst times last year. And we're looking forward to further improvement on that. We hope to say essentially overtime, somewhere between $2 and $4 a barrel, as a result of first the recovery of our cost delaying that line. And then brining what I would call the transportation through the line down and that should save us in comparison to trucking between $2 and $4 a barrel. And we don't rail out anything. Our friends at EOG do rail-outs in barrels and that I believe this probably one of the reasons if they elected not to perhaps complete wells as we did during the winter time up there, they were suffering somewhat greater differential than we were. So I concur on their decision there not to complete this many wells during the winter. And I think it's a good decision on their part. We however weren't suffering quite as big a differential. So we when had completed our wells.
Joe Allman - J.P. Morgan
So the cost of trucking, you are saying as a roughly $2 to $4 per barrel?
Jim Volker
Its about 4 bucks now and we hope that as we get it into the third quarter of this year, then you will see a decline hopefully a couple of bucks and then after the recovery of cost of the gathering system and that line that we're putting in, it we should do better than that somewhere into ranges $3 to $4.
Joe Allman - J.P. Morgan
Great, and do you have any firm transportation on that line? I mean how much capacity do you think you will have?
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