State Department officials are studying options for TransCanada's Keystone XL pipeline, including crude oil shipments via rail, as part of their environmental review of the pipeline, according to industry sources. The department has requested input on market dynamics, challenges and supply chain logistics from crude-by-rail executives. "We remain very, very confident that rail is here to stay as not a replacement for pipelines, but as a supplement to pipelines," said Stew Hanlon, president of logistics firm Gibson Energy.

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