Railroads continue to pick up slack left by pipeline capacity shortfall

12/3/2012 | Dickinson Press (N.D.)

A shortfall in pipeline capacity in North Dakota has led to an increase in crude-by-rail shipping, which plays a major role in Bakken oil transportation, writes Bryan Horwath. For instance, BNSF immediately stepped in to provide service to oil producers, said John Lanigan, BNSF executive vice president and chief marketing officer. "Historically, oil and gas producers have used pipelines to transport crude from production to refineries," he said. "Because this shale development growth came about so quickly, there has been a shortage of pipeline capacity to coastal refineries."

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Dickinson Press (N.D.)