Both rail and pipelines will move crude oil safely and reliably, rail industry Affirms

WASHINGTON, D.C.–Association of American Railroads (AAR) President and CEO Edward R. Hamberger addressed energy and financial industry leaders in Washington, D.C. on January 23, reaffirming the rail industry’s commitment to haul crude oil safely and reliably as America continues on a path toward energy independence. Hamberger also emphasized that both rail and pipelines will have major roles in moving crude oil across North America as the domestic energy industry continues to grow, said a release. 

“Because our U.S. freight railroad network is strong and flexible, the industry is rising to meet the challenge of safely hauling the dramatic increase in domestically produced oil,” said Hamberger.

“As an industry, we are able to access a 140,000 mile network to meet the needs of oil-producing customers while additional pipeline capacity is coming online in North America.” 

According to the U.S. Energy Information Administration, US crude oil production will reach 8.5 million barrels per day by the end of 2014 – up from just 5 million barrels per day in 2008. This robust domestic supply is expected to continue to grow and wean American consumers off imported oil from unstable foreign sources. 

US freight railroads transported nearly 234,000 carloads of crude oil in 2012, up from just 9,500 carloads in 2008. Early data suggest that rail carloads of crude surpassed 400,000 in 2013, said the release. 

“As we develop these new energy resources, policymakers are asking, which mode is best for transporting crude oil- freight rail or pipelines? The answer is both. Railroads and pipelines both transport crude oil safely and reliably, and each has a role to play enhancing our energy security and delivering energy to American families and business,” said Hamberger. “There is, and will be, plenty of crude for all modes to move.”

 With increased carloads of crude moving across the country, the industry is striving to improve safety standards for transporting energy products. Rail companies own the locomotives and tracks that freight railroads operate on, but shippers and rail car companies own nearly all of the nation’s tank cars while their customers own the contents of those cars. This multi-industry dynamic makes for a complex safety environment, requiring a high degree of coordination among all parties. 

“Last week, leaders from the rail and energy sectors met with Transportation Secretary Foxx to discuss actions we can take to improve safety of the movement of crude oil by rail. We share the Secretary’s sense of urgency and want to help instill public confidence in rail’s ability to meet the demand for moving more energy resources in this country,” Hamberger concluded. “The rail industry looks forward to continuing to serve its customers and the communities we move through every day safely and reliably.”