Crude oil rail supply jumps for East Coast refiners

For the first time, more than half of East Coast oil refineries’ crude oil supply arrived by rail in February, according to a Tuesday study from the U.S. Energy Information Administration.

The growth of crude-by-rail, which began creeping upwards in 2010 and rose precipitously starting last year, could add to the debate over new safety standards for oil railcars.

{mosads}Last week, the Obama administration released beefed-up rail regulations, requiring retrofitting or retirement of the current fleet of oil cars within seven years and a series of new standards on speed limits, car design, braking and routing. Canadian officials agreed to similar rules for their railways, as well.

The new regulations come after a handful of oil car derailments and explosions around the country, including in North Dakota, Illinois and West Virginia. Some lawmakers, such as Sen. Chuck Schumer (D-N.Y.), said the new rules should go into effect more quickly. 

According to EIA, 52 percent of the crude oil refined on the East Coast in February arrived via rail, much of it from the Bakken oil fields in North Dakota and Montana. Refinery utilization dipped that month, but the percentage of crude delivered by rail was the highest it’s ever been, EIA said. 

Since 2010, imports of foreign crude oil to East Coast refineries have dropped while the domestic rail supply has increased. EIA credited the increase in rail shipments to improved loading and unloading capacity at the refineries.