Approximately 2/3 of Bakken crude moves by rail
The amount of crude oil and refined petroleum products moved by U.S. railroads increased 9% during the first seven months of this year compared with the same period in 2013, the EIA said in a report today.
“In July, monthly average carloadings of oil and petroleum products were near 16,000 carloads per week, according to the Association of American Railroads. The increase in oil volumes transported by rail reflects rising U.S. crude oil production, which reached an estimated 8.5 million barrels per day in June for the first time since July 1986,” the EIA report said.
More than half of the nearly 460,000 carloads of petroleum and petroleum products tracked by the AAR between January and July consisted of crude oil, up from around 3% in 2009. “With the average rail tank car holding around 700 barrels of crude oil, about 759,000 barrels of crude oil per day were moved by rail during the first seven months of 2014, equal to 8% of U.S. oil production,” the report said.
Between 60% and 70% of the more than 1 million barrels per day of oil produced in North Dakota has been transported to refineries by rail on a monthly basis in the first half of 2014, according to the North Dakota Pipeline Authority.
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