Oil and Gas Today with Chris Faulkner – Podcast #453

California will soon see a surge in the number of trains carrying crude oil into the state, as oil production in North Dakota’s Bakken region and Canada continues to increase, sending more crude to California refineries. Nationally, oil by rail is on a steep upward trajectory: US freight railroads carried more 280 million barrels of crude oil in 2013, compared to just 6.65 million barrels in 2011. The flexibility and economics of rail transport as compared to new pipeline construction have made oil by rail an attractive option California is already experiencing the effects of increased oil by rail transportation due to the North American hydraulic fracturing boom. In 2011, California moved less than 2 million barrels of oil by rail; in 2013, that number rose to 6 million, and projections are up to 150 million barrels by 2016.

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