U.S. Railcar Oil Deliveries Hit Record in 2012
The use of rail cars to transport crude oil in the U.S. reached a record in 2012 and continues to rise, the Association of American Railroads said Thursday.
Refiners increasingly depend on rail cars to bring in the oil being produced in increasing quantities throughout the U.S. and Canada. Innovations in drilling techniques have allowed oil companies to cull oil from shale formations in South Texas, North Dakota and elsewhere faster than pipeline companies have been able to connect the wells to market.
A record 233,811 carloads of crude oil traversed the U.S. in 2012, up from 65,751 carloads the year before, the association said. In January, crude oil and fuel shipments via rail averaged 13,043 carloads a week, up 54% from the 2012 weekly average, the association added.
"There's never been a year when they've been 250% plus up," said Kevin Sterling, analyst at BB&T Capital Markets. "The tank car manufacturers, they're building tank cars as fast as the orders come in."
Read more: http://www.foxbusiness.com/news/2013/02/21/us-railcar-oil-deliveries-hit-record-in-2012-trade-group/#ixzz2MQs8kTTr