facebook
twitter
rss
account
search
search
 

Rail deliveries of crude oil increasing

March 19, 2013 at 6:09 AM   |   Comments

HOUSTON, March 19 (UPI) -- Crude oil transport by rail in the United States is expected to hit the 700,000 barrel-per-day mark by the end of the year, said BNSF head Matthew Rose.

The Association of American Railroads reports that U.S. weekly carloads of petroleum products increased 46.5 percent for the week ending March 9 year-on-year. Much of that increase is fed by oil production in North Dakota, where output has surpassed existing pipeline capacity.

Rose, BNSF chief executive officer, told energy news website Rigzone that rail delivery from the Bakken play in the Northern Plains is increasing along with the oil boom.

"We have garnered a lot of attention lately on our crude by rail, hauling about 525,000 barrels a day of crude oil, and we expect to be hauling about 700,000 barrels a day by the end of this year," he said.

It's more expensive to ship crude oil by rail, though shipment time is less. Credit Suisse in February said it takes about 90 hours round trip for Bakken oil to reach southern U.S. refineries versus 40 days by pipeline, Rigzone reports.

A U.S. State Department review of Keystone XL said rail infrastructure should be considering when weighing the national interest of the pipeline planned from Canada.

© 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
Destroyers with ballistic missile defense capability heading to Japan Destroyers with ballistic missile defense capability heading to Japan
2
Brazil, Argentina to strenghten aerospace cooperation; talk Gripen deal Brazil, Argentina to strenghten aerospace cooperation; talk Gripen deal
3
Little girls drop F-bombs for feminism in new FCKH8 video Little girls drop F-bombs for feminism in new FCKH8 video
4
Maker of Camel cigarettes bans smoking in workplace Maker of Camel cigarettes bans smoking in workplace
5
Warren Buffett loses $2 billion in 2 days on investments Warren Buffett loses $2 billion in 2 days on investments
Trending News
Around the Web
x
Feedback