Railroads Resist Storing Crude in Tank Cars

Suggestions from oil companies that they be allowed to store surplus crude oil in railroad tank cars are not getting a positive reception from the railroad industry.

Carriers are citing safety concerns when asked by shippers about long-term storage of crude oil.

The oil companies have raised the idea because the plunge in crude oil prices combined with reduced demand have left them with large supplies of crude oil and fewer places to store it.

Railroads have pointed out that federal rules limit storage of oil in rail cars, even at private facilities.

Those rules permit the storage of only a small amount of crude oil.

An oil price war between Saudi Arabia and Russia has led to sharp declines in crude oil prices.

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