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Oil on the rails

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  • Description

    Trains from Canada fill void left by failed Keystone pipeline

  • Duration 2:28
  • Date

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If not -- -- go -- -- L with the Keystone Pipeline apparently in limbo Canadian oil companies are turning to the old train system to get their oil from Alberta oilsands down to the Gulf Coast refiner is.

Dan Springer is classes from Seattle -- Dan can trains.

Completely replace the pipeline seems like they're gonna jab but -- they used to do right.

Yeah that's right Martha they can't completely replace the pipeline what you know if you're sitting on a whole bunch oil you are looking for any way to get that the market.

It's a little back to the future thing going on here a hundred years ago of course real was the way.

To transport oil but that gave way to the pipeline.

Knowledge the politics of pipeline getting in the way of getting new pipeline trades are getting back on track.

Oil producers to see it as a way to get around the bottle -- which is costing them money.

They've got feel and they have to get it to the refineries depending on how much oil they happen where have to go to be twice as expensive sending it by rail.

But that's still a bargain given the price of oil in the deep discounts they have to give refiners when the product is delayed.

In Canada we're looking you know in the tens of thousands to 50000 barrel a day options and US -- in the North Dakota area they're talking about moving to.

From -- ten to 20000 barrel a day up 250000.

Barrels and it's a massive growth in rail transport.

And how massively US real giant BNSF has seen its oil volume jumped 600%.

Over the last decade Martha -- that is interesting so environmentalists of course have -- the pipeline.

How are they reacting to this action.

Well a little bit like they won the battle -- lost the war they got the Obama administration to reject the -- don't pipeline at least temporarily but now some of that oil from the -- -- tar sands is still making its way into the US.

It's not nearly 700000 barrels a -- it keystone was projected to Kerry.

But it's -- start environmentalists point to a State Department report which says transporting oil by rail is what intentionally even more dangerous to the ecosystem.

Then by pipeline but mainly they hate the way oil sands oil is produced.

So oil is it dangerous to our communities whether it's in a pipeline in a train in a truck -- passenger pigeon.

Oil sands is the wrong product to be shipping through America's communities.

And a whole debate is so hot right now because oil production between the shale fields of North Dakota and oil sands of western Canada.

Is booming market them.

It is Dan thank you very much stands --

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