Many Crude Oil Transportation Companies appear willing to use the railway to transport their products. The shift to the rail is due to the fact that the pipelines appear incapable of handling the huge volumes of crude oil that needs to be transported. This trend has been quite prevalent in the US, and all indications point to the fact that it will continue into the future. The use of pipelines to transport crude oil has always been viewed as the most economical method. The shift to rail transportation, although still at low levels, has destroyed the notion that the transport companies are more interested in the economics and the belief that they would never consider other methods of transporting crude oil.
Rail-road companies are increasing their investments in this form of oil field transportation. The companies are investing millions of dollars to improve the state of the railway lines. The companies are also investing in better equipment and trains used in transportation of crude oil from one location to the next. The railway lines that lead to refineries currently enjoy the largest demand. It is interesting to note that a mere five years ago, you would be laughed out of town for suggesting transportation of crude oil using the rails. As popular as the use of railroads to transport crude oil may seem, the danger that it presents to the environment and populations is hard to ignore.
Some experts believe that the use of railroads to transport crude oil is one of the riskiest ventures ever known to humanity. The issue of safety keeps cropping up, especially when accidents occur everywhere during oil field transportation via the railroads. The fact that railroads run right through the center of urban areas, and that the cargoes carrying crude oil use the same routes, is cause for concern. Some experts feel that transporting crude oil in this manner is a time bomb, and one that could explode any moment. The relevant authorities have to be well prepared for such eventualities; otherwise, they would never have given the transport companies the right to proceed with their services.
In 2008, the use of rail system was responsible for the transportation of around 9,500 carloads of crude oil. In 2013, the number rose to around 407,642 carloads of crude oil. This is a clear indication that many crude oil transportation companies are opting for the railroad. It is not as if the companies have shifted completely from the use of pipelines. What appears to be the case is that the companies are augmenting their use of pipelines as the major source of transporting crude oil with that of railroads. This way, the companies are able to transport a large volume of crude oil than they would have managed if they opted to use pipelines alone. This ensures the ready availability of crude oil at refineries where it is in great demand.
In conclusion, the reason behind the massive interest in and demand for railroad as a method of oil field transportation, as used by many crude oil transportation companies, is the need for finding effective ways to transport the product at refineries, and wherever else it is needed.
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