California slashes oil-by-rail shipments from Canada by 86% and goes domestic

California, the nation’s largest gasoline market, has cut its oil-by-rail volumes from Canada by 86% this year while buying more crude made in America.The most populous U.S. state received 3,142 barrels a day by rail from Canada in July, down from 6,669 in June and a peak of 22,871 in December, California Energy Commission data show. Meanwhile, it more than doubled the oil delivered by rail from Colorado, took a record amount from Utah and brought in more barrels from New Mexico and North Dakota.The oil-by-rail shipments have surged to a seasonal record as the state’s refiners, lacking direct pipeline access, turn to trains to bring in production from U.S. shale formations. The boom has boosted domestic output to the highest level in 28 years, bringing the nation closer to energy independence.“In the California scheme of things, the change in Canadian rail volumes isn’t that big, a drop in the bucket for an average refinery running at 200,000 barrels a day,” James Williams, president of WTRG Economics in London, Arkansas, said by telephone Sept. 5. “But in the ‘I’m a Canadian getting way too little for my oil’ scheme of things, any opportunity to export a barrel to the States has got to be welcomed.”

via California slashes oil-by-rail shipments from Canada by 86% and goes domestic | Financial Post.

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