Rising crude production means more demand for rail service

05/21/2013 | OpenMarkets.com

A surging volume of petroleum production combined with pipelines filled to capacity is pushing up demand for rail service, which is now seen as a "viable complement to pipelines and a permanent part of the energy infrastructure," writes Debbie Carlson. "Railroads have made a significant impact" in the energy industry, said RBN Energy President Rusty Braziel. The increased demand is also indicated by the Class I's record carload volume last year, which increased 256% over 2011 levels, according to AAR.

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