Rail emerging as long-term North American crude option

Julie M. Carey Navigant Consulting Inc. Washington, DC Initially thought of as a stopgap for transporting North American crude oil production until new pipelines could be built, the relatively short time needed to recover capital costs of rail infrastructure has opened the possibility that rail transportation rates could be reduced enough to keep railroads competitive and profitable even as compared to new pipelines. Both the US and Canada have the opportunity to reduce their dependence on oil imports and increase their energy security through new domestic supply sources. Global crude markets became out of balance as North American supplies entered the market, demonstrated by the more tha...

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