Oil-by-rail gathers steam as new capacity comes on line
Posted on January 9, 2014
Financial Post reports on how the lack of pipeline capacity has prompted oil producers to increase usage of crude-by-rail for product deliveries.
A barrel of Canadian heavy blend can cost $17 to $21 to ship to the Gulf Coast via regular â€˜manifestâ€™ trains, compared to $7 to $11 via pipeline. However, unit â€” or dedicated â€” trains can help shave off between $3 and $4, according to industry data. Transporting condensates back to the original destinations also helps margins.
Hussain, Yadullah(2014, January 9 Published). Oil-by-rail gathers steam as new capacity comes on line. Financial Post. Click here for full article.