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Final Keystone Review Assesses Potential of Oil-By-Rail

(Reuters)

U.S. officials weighing the climate impact of the proposed Keystone XL oil pipeline connecting Canada to U.S. Gulf Coast refiners are zeroing in on the question of whether shipment by rail is a viable alternative to the controversial project, industry sources say.

As it prepares a final environmental review of the $5.3-billion oil pipeline, the State Department has asked crude-by-rail executives about supply-chain logistics, market dynamics and potential obstacles to delivering 830,000 barrels per day of Canadian crude to Gulf Coast refiners, as Keystone would do.

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