For major crude by rail destination the impact of the proposed safety regulations will increase the cost per transported barrel. Producers, carriers and refineries will need to incorporate the impact of these changes when calculating the netbacks for transporting crude. These changes will affect the decisions for both where and how to transport crude oil from domestic sources to key consumptions areas.
Cost & Capital developed the below tool to estimate cost impacts of the new regulation. Variables in the red-shaded cells (i.e. origin, destination, speed, route congestion, braking improvements) can be modified to determine the financial impact on a specific route.