Comment Re: Shouldn't have to run oil by rail (Score 1) 199
No, ONE of the alternatives to Keystone XL is one (or more) pipelines West (to the coast) or East to the (other) coast...
But realistically given the amount of oil in the ground its not a question of which pipeline but how many and on what schedule. Keystone was promoted as an early contender because of the additional oil in the ground in (for example) North Dakota and because of the existing infra-structure in the southern US (refineries and shipping.)
The net result is that Keystone --XL will be built, basically the parts up to North Dakota, because there is and will be close to sufficient need for that anyway. Rail will be used to bridge the 49th parallel until such time as the State Department OK's the crossing. And all of the parts up to the 49th have the required approvals (from the states) to be built. At some point in the future a State Department WILL OK the crossing. Just have to wait.
I had thought they might just implement a short hop. But currently the plan is to use the existing (building in progress) rail terminal in Hardisty Alberta to ship to somewhere in (i think, name escapes me) in Nebraska. This is much longer (close to 2000 km) but utilizes existing infrastructure sooner.
The reason that this is all moving to rail is simple. It is cost effective. It exists. It does not need (new and/or changed) regulatory approval. You just arrange to have your product delivered to one railhead, the railroad will arrange everything else and get it to the destination for you. The cost is higher than rail but still lower than the differential in pricing.