In One Chart, See Why 2012 Was A Historic Year For The US Oil Comeback

There’s been a lot of buzz lately about the rebound in the US oil industry, and how the US is turning into “Saudi America.”

One of our favourite charts that show just what a transformative year it has been comes from the American Association Of Railroads (.pdf). It shows US + Canadian average weekly rail carloads petroleum and petroleum products.

There are two main takeaways:

  • One is that the takeoff, month after month has been incredible.
  • The other is that it’s by rail, which means that the existing infrastructure is bursting at the seems (rail is much more expensive than, say, pipelines).

In the US, natural gas prices have collapsed because there’s been a boom in production that’s overwhelmed infrastructure, The beginnings of that are happening year.

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