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Wrong Side of the Tracks: Why Rail is Not the Answer to the Tar Sands Market Access Problem
By Lorne Stockman, et. al. - Oil Change International, September 2014
Tar sands pipelines face increasing resistance both in the United States and Canada. As existing pipelines reach capacity, the delay and possible cancellation of new pipelines is costing tar sands producers billions of dollars and reducing investment in the sector. The success of anti-pipeline campaigns has forced industry to look to rail in an attempt to address these losses and open new markets for their product.
The crude oil produced from the Albertan tar sands is a semi-solid substance called bitumen, rather than a liquid crude oil. Shipping bitumen by rail is more expensive than shipping it by pipeline and the added cost is a substantial challenge to the long-term viability of the tar sands industry. Despite significant evidence, market analysis, and real world experience to the contrary, some prominent institutions - including the U.S. Department of State - continue to assert that rail has the potential to replace tar sands pipeline capacity, and thus the rapid pace of tar sands development will continue regardless of whether new pipeline capacity is built or not.
This report details why this is not the case.
Read the report (English PDF).
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