by Keith Schaefer, Oil Price:
Some call it the “holy rail.”
In Alberta Canada, an estimated 120,000 barrels of oil per day are shipped out by train to the U.S. east coast and Gulf coast region.
By the end of the year – when several terminals are completed – that number could reach 200,000 barrels a day.
Despite rail costs doubling pipeline tariffs, the logistics have often been worth the time for producers – those that have been able to get a better price railing it past the mid-continent refineries all the way to the US East Coast and Gulf Coast.
But just as Canadian rail use is set to soar again, say analysts—rail may no longer be economic.
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