The Fuel and Petrochemical Supply Chains

approximately 1.4 million carloads of crude oil, NGLs, refined products, plastics and synthetic resins were delivered by rail within the United States in 2016. The associated graph details carloads of crude oil, NGLs, and petroleum products. Rail Car Retrofits Improve Safety In 2012, the volume of crude oil moved by rail began to increase rapidly as production from the Bakken Formation in North Dakota overwhelmed the capacity of pipelines to move the crude to refining centers. To address safety concerns related to moving crude by rail, the industry, including shippers and tank car owners, began one of the largest rail tank car retrofits in U.S. history. This was later reinforced by federal regulations that required tank cars in flammable liquid service to improve puncture resistance and thermal protections. According to U.S. Department of Transportation estimates, these standards required replacing or retrofitting more than 90,000 tank cars at a total investment of $520 million. 22 Additional investment in accident prevention, including addressing track issues, equipment failures and human error, which are the primary causes of most train derailments, would further enhance the safety of moving petroleum and petrochemicals by rail.

Rail infrastructure includes: • Rail cars (tank cars for liquids and gases, and hopper cars for solids, such as plastic resins) and locomotives; • Rail car loading and unloading facilities; and • Railway tracks and switchyards. Crude oil and refined transportation fuels, such as gasoline and diesel, typically move by rail when they cannot be moved by pipeline or marine vessel. Certain NGLs – propane and butane – commonly move by rail, as do heavier, solid or semi- solid refined products, such as asphalt, petroleum coke and sulfur. Petrochemical products, such as plastic resins, move by rail as well, as do chemicals needed in the operation of petroleum refineries, such as acids and caustic soda. While biofuels, such as ethanol and biodiesel, can be transported by pipeline, their physical and chemical properties present operational challenges and therefore they are primarily shipped by rail. As rail transport of petroleum and petrochemical raw materials and products continues, new investments are needed to maintain and improve our nation’s rail infrastructure. By the Numbers The U.S. rail network includes 140,000 miles of railway track. 21 According to the American Association of Railroads,

Approximately 1.4 million carloads of crude oil, NGLs, refined products, plastics and synthetic resins were delivered by rail within the United States in 2016.

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