Oil-by-Rail Shipments Cutting Into Coal Deliveries

 

Oil-by-Rail Shipments Cutting Into Coal Deliveries

OilPrice.com By Nick Cunningham | Wed, 06 August 2014 

The rapid growth in U.S. shipments of crude oil by rail is leading to an unexpected shortage of coal at many power plants across the country....

.....Oil shipments originating in North Dakota are competing for rail space with coal coming from Wyoming and Montana, and traversing agricultural states that need space on railcars to ship their farm products. 

The result has been delays in shipments of corn, grain, and even coal. Several utilities in the Midwest are watching their coal stockpiles diminish as they burn through inventories, as resupplies come in at a slower and slower pace. 

According to the Star Tribune, a Wisconsin utility could be forced to shut down electricity generation this winter because it could run out of coal. Dairyland Power has not been able to replace coal stocks fast enough and could face a critical shortage when the cold sets in...... 

...Several members of Congress have written letters to the U.S. Surface Transportation Board (STB) to urge regulators to resolve the situation. The STB has decided to hold public hearings on the problem......read more here