Crude oil will continue rolling by rail


Shipments of crude oil by rail have risen sharply as uncertainty over several big pipeline projects including Keystone XL has sent some oil companies looking to rail as a longer-term solution.

Rail offers flexibility, allowing shippers quickly to redirect supplies to wherever they are most valued; coastal refineries aren’t convenient to the pipeline network and likely never will be.

Although the profitability of crude by rail is being squeezed by rising benchmark prices, customers and railroads alike are still investing in terminals and signing long-term contracts, suggesting that crude by rail is here to stay.

Comments (1)
  • bob adamson
    , contributor
    Comments (4560) | Send Message
     
    An interesting article in the August 2nd Globe and Mail calls into question the safety of transporting Bakken oil by rail, it may be too flammable.

     

    http://bit.ly/1bSIA0F

     

    Arguably the transportation of this oil by pipeline would be much safer, possibly mixed with syncrude from Alberta via the Keystone XL.
    2 Aug 2013, 12:42 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs