DOT Regulation Impact on Crude by Rail

Please click here for a complimentary copy of our report on DOT Regulation Impact on Crude by Rail.

The Department of Transportation published the proposed regulations for transporting volatile crude by rail on July 23rd, 2014. These regulations will reduce the speed limit for unit trains carrying crude, particularly from the Bakken region. The regulation also calls for upgraded tank cars to better withstand damage from derailment.

This report calculates the change in costs for common destinations for Bakken crude. Included in the report are the cost models for tank car leasing, rail freight and a lane by lane analysis of the impact of the changes. Producers, carriers and refiners will all be affected by the changes over the coming years. As these changes increase the cost, this will affect netbacks that producers are currently able to achieve for Bakken crude.

Please click here for a complimentary copy of our report