North Dakota Relying More on Railroads to Move Oil
Subscribe today for Free Enterprise Updates
- Latest business trends and best practices
- News about legislation and regulation impacting business
- Business how-to articles from industry experts
- Commentary and interviews with newsmakers in business and politics
The North Dakota oil boom continues to rely more on railroads to move oil out of the state. The Houston Business Journal reports [emphasis mine]:
Phillips 66 plans to buy as many as 2,000 railroad tank cars to ship oil from shale fields to its refineries, another indication that the shale boom is shaking up the U.S. energy industry, Reuters reports.
Oil companies in thriving shale fields such as South Texas' Eagle Ford and North Dakota's Bakken have turned to rail, trucks and barges to move crude because pipeline development has not kept up.
Fox Business reports that Musket, Corp. finished upgrading a rail facility to move 60,000 barrels daily from the Bakken Shale.
I wrote in January that moving oil by rail is more expensive than by pipeline.
Do you know what would be really useful? A pipeline project that could start being constructed if only if it has administration approval. I wonder where we could find one of those?
