Terminal Network

There is a bright future for crude by rail in the oil shale plays regardless of what happens to crude price differentials. That is because the flexibility of rail transport meshes well with the rhythm of shale oil development. Meantime Canadian heavy crude will be the focus for rail terminal development in the near term as continued pipeline delays force producers to look seriously at rail options. And the economics of raw bitumen by rail may end up undercutting pipelines. Today we look ahead to these trends.