By June 16, 2015 0 Comments Read More →

BNSF Expects Crude-by-Rail Volumes to Grow After Price Rebound

June 16, 2015|Bloomberg News| A 37 percent rebound in oil prices will boost crude-by-rail shipments as drillers complete more wells and extract more crude that U.S. pipelines don’t have the capacity to handle, Burlington Northern Santa Fe LLC executive chairman Matthew K. Rose said Monday.

BNSF is preparing for a recovery after shipments of crude and petroleum products by rail fell from a record 17,074 cars the week of Dec. 12 to less than 13,000 in March as crude prices fell by more than half.

The production cuts and strong demand from refineries have led prices to rebound to about $60 a barrel from a six-year low of less than $44 in March. Another increase in oil-by-rail volumes would come as environmental groups and government agencies question the safety of rail transport after a series of high-profile explosions.

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