Analysts: Crude-by-rail will stay despite recent rail explosions

01/2/2014 | FuelFix.com

The government may heighten regulations on shipments of crude oil by rail following the recent train derailment in North Dakota, according to investment banking firm Tudor, Pickering, Holt and Co. However, railways will remain as a major mode of transportation to ship oil, the firm said. "Rail will be the long-term transportation solution out of the Bakken (Shale play of North Dakota) to the U.S. East and West Coasts due to the lack of pipeline infrastructure to those refining centers," the company said. In September, EY Oil & Gas released a similar statement, saying trains are "here to stay" to serve areas that cannot be reached by pipelines.

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