- Blog

A Tank Car Train for Hire – Part II – Understanding Rail Transportation Strategies

News flash!  ---Rail transportation has become a very big deal in the business of transporting crude oil, NGLs and petroleum products!!----The whole world does not revolve around pipelines!   Yup, the media has discovered that hydrocarbons can ride the rails.   Never mind that liquid hydrocarbons have been moving in tank cars for 150 years.   The news is that rail is having a market impact like never before.  And that is because there has been a strategic shift in the way rail transportation is being used by the petroleum industry.   In Part II of our series we’ll dissect the strategies being used and discuss how things are evolving in the world of tank cars.

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Ridin’ the Bakken Slow Rail

Drilling and crude oil production in the Bakken has developed much faster than the gathering and pipeline infrastructure necessary to move the barrels.  Consequently, over the past two years rail has become a significant feature of crude oil transportation in the region.  According to the North Dakota Pipeline Authority, the capacity of rail terminals in the state was about 300,000 b/d at the end of 2011, and will reach 750,000 b/d this year.  But there is a catch.  The rail lines in North Dakota were not built for this kind of traffic.