July 6, 2020 – Reuters
Dakota Access pipeline shutdown may revive oil-by-rail industry
By Laila Kearney and Devika Krishna Kumar
NEW YORK (Reuters) - Companies that transport oil by rail are prepping for a business surge after a federal judge ordered the largest crude pipeline out of North Dakota to shut within a month, market sources said on Monday.
At full capacity, DAPL carries the equivalent of seven to eight trains per day, Apland said. Other regional pipelines could absorb about two to three trains' worth, he added, leaving the rest for rail.
The closure could rejuvenate an oil transport industry that has declined since DAPL began operating in 2017.
"The Bakken was the original home to crude by rail," said Rusty Braziel, CEO of Houston-based consultancy RBN Energy.
"If it turns out production comes back, and there are still a lot of crude by rail terminals in North Dakota, this is something that will motivate a lot more crude by rail shipments from that area than we've seen in a long time."