facebook
twitter
rss
account
search
search
 

More U.S. oil delivered by rail

Feb. 8, 2013 at 6:28 AM   |   Comments

WASHINGTON, Feb. 8 (UPI) -- Petroleum product deliveries by rail in the United States for January were up more than 50 percent compared to the same time last year, a trade group said.

The Association of American Railroads reports that monthly rail traffic for January showed a 54.1 increase for petroleum products year-on-year. Coal deliveries, meanwhile, declined 14.5 percent for January when compared to last year.

AAR Senior Vice President John Gray said the decline for coal and increase for petroleum products was becoming an "old pattern." Railroad companies, he added, are expected to invest $24.5 billion in their systems this year.

"They're making these investments because they are confident that demand for freight transportation, over the long term, will continue to grow," he said in a statement.

New technologies used to extract shale oil and natural gas in the United States has led to a boom that's overwhelmed existing pipeline capacity.

U.S. refiner Phillips 66 in January signed a five-year agreement to deliver crude oil from the Bakken play in North Dakota to a New Jersey refinery by rail.

The U.S. Energy Department said that coal remains the dominant commodity shipped by rail despite the increase in petroleum product freight.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Tesla could face sales ban in Michigan Tesla could face sales ban in Michigan
2
Early completion of refit of Italian aircraft carrier Early completion of refit of Italian aircraft carrier
3
Europe must drop the euro, Germany abandon mercantilism Europe must drop the euro, Germany abandon mercantilism
4
Russia doesn't fear Azeri gas, scholar says Russia doesn't fear Azeri gas, scholar says
5
British Reaper UAVs join the fight against Islamic State British Reaper UAVs join the fight against Islamic State
Trending News
Around the Web
x
Feedback