You don’t need to look far for a good example of why that trend toward cheaper fuel alternatives is growing.

Railing in lieu of pipe is expensive and not enough railcars are available, says Dahlman Rose’s Seidl.

Kinder Morgan Energy Partners LP and Martin Midstream Partners LP formed the Pecos Valley Producer Services LLC joint venture to build a rail terminal in Pecos, Texas.

Two new rail transportation projects were announced to improve the flow of crude from Canada to Louisiana.

Canadian Pacific Railway is investing more than US$90 million to enhance capacity on its U.S. main line south of Saskatchewan, through North Dakota and into Minnesota to handle anticipated increased Bakken crude shipments.

As geopolitical turmoil drives crude prices skyward and lifts retail gasoline to US$4.89 per gallon (/gal) in cities like Los Angeles, it’s anything but business as usual in the U.S. oil patch.

Nearly 150 years after trains first revolutionized the U.S. oil trade, crude is hopping the rails once again as operators, producers and traders try to cash in on the biggest domestic price gap in decades.