Shale output spurs demand for tank cars

May 13, 2013 | 05:03 PM | Frank Haflich

Tags  railroads, Union Pacific, Ken Norwood, shale, oil, crude, tank cars, Jack Biegalski ArcelorMittal USA

SEAL BEACH, Calif. — Shale plays are making the West a "very hot market" for both the railroads and the tank cars that transport output from energy-rich regions, one railroad executive said.

Shale-based crude oil production is likely to continue to exceed pipeline capacity, Ken Norwood, director of business development for Union Pacific Railroad Co., said at an Association of Women in the Metals Industries meeting late last week.

"Try to get a tank car today—it’s impossible," said Norwood, whose company transports oil for customers in North Dakota’s Bakken Shale and other regions. He said a customer recently couldn’t find a single available tank car to move chemicals from Houston to the San Francisco area. ....





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