Crude Oil By Rail Traffic Making Comeback

A crude oil train rolls through Olmsted Falls on the Chicago Line of Norfolk Southern.

There is reason to believe that oil companies are increasing their shipping of crude oil by rail.

The Chicago-based Morningstar investment research firm recently conducted an analysis of the crude-by-rail shipment market and said it is rebounding due to pipeline congestion.

The firm said that delays in construction of the Keystone XL pipeline have led some oil producers to increase or return to the rails to ship oil, particularly from Canada.

Crude-by-rail enjoyed a booming business back in 2014, but then began declining. Morningstar said crude-by-rail began rising against last year.

“Given that no new cross-border pipeline capacity is expected on line before 2019, we expect Canadian crude-by-rail traffic into the United States to continue growing as production increases,” Morningstar analysts wrote.


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