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PLG Consulting publishes their 2022 4th edition industry report entitled What to Know - Waste Plastics Recycling and The Circular... read more
A leader in paper and paperboard recycling, with production plants in Canada and 80+ destinations throughout North America, was looking... read more
A major petroleum refiner, producing high-value light products such as gasoline, diesel fuel, jet fuel and specialty lubricant products was... read more
PLG Consulting’s GH2 expert, Taylor Robinson, shares his latest insights on the evolving business case for green hydrogen in the... read more
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It’s not profitable to ship crude oil by rail. The main driver of crude-by-rail shipments is the price difference between Canada’s benchmark Western Canada Select and Western Texas Intermediate, a U.S. benchmark. When the discount is wide, crude producers line up unit trains and load ‘em out. When the spread is narrow, rail traffic dwindles. Short-term (one-year) DOT-117J lease rates see price swings in reaction to the spread. The 28,500-gallon DOT-117J tank car is a standard car used to ship crude oil. One rule of thumb is that when the discount is narrower than $17/bbl., CBR economics become so unfavorable that spot shipments dry up.
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Contributor: PLG Sr. Consultant, 30-year veteran business journalist and founder of analytics firm that tracks rail car leasing rates, Clifton Linton.