American Petroleum Institute urges competitive rail switching as way to lower energy costs

The American Petroleum Institute (API) recently joined the Shipper Coalition for Railroad Competition in filing comments supporting competitive rail switching, a measure that would make rail shipment rates more susceptible to market forces.

“U.S. innovation and free markets have allowed our nation to lead the world in the production of oil and natural gas and in the reduction of carbon emissions, which are near 20-year lows,” API Midstream Group Director Robin Rorick said. “Increasing competition in our nation’s railroads will help bring our nation’s energy resources to market more efficiently.”

Competitive rail switching is being considered as the Surface Transportation Board considers updates to its rules for rail shipments. The API, which represents more than 625 companies in the oil and natural gas industry, supports the measure as a way to garner better prices for transporting oil and gas products.

“A market driven approach benefits consumers by providing opportunities for competition,” Rorick said. “Lowering the cost of delivering our industry’s products will further perpetuate the gains our nation has achieved in this energy renaissance which has lowered energy costs for consumers and provided great benefits to American workers.”



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