Utah Oil Industry Seeks Railway Expansion for Crude Exports

Posted : November 12, 2023

The oil and gas industry situated in northeastern Utah is aggressively seeking to enhance its railroad capacity. The objective behind this expansion is to expedite the transfer of more waxy crude oil towards the eastern part of the region, using the Colorado River's route as a strategic pathway. This move is seen as a response to the increasing demands in the energy market, aiming for improved accessibility, efficiency and an overall boost in energy transportation.
1. The oil and gas industry in northeastern Utah is actively working to increase its railroad capacity for better transportation of waxy crude oil.
2. Their aim is to speed up the transfer of this oil towards the eastern part of the region, using the Colorado River's route.
3. This strategy is a response to the growing energy market demands, with a goal to improve accessibility, efficiency, and overall energy transportation.
4. The northeastern part of Utah, also known as the Uinta Basin, has a large deposit of waxy crude oil, which is more difficult to transport and refine than traditional crude oil due to its high paraffin content.
5. The intention behind increasing the railroad capacity is to support the expanded operations of oil producers in the area, opening up new markets and refining the waxy crude oil in facilities equipped with the correct processing technology.
In 2020, the oil and gas industry in northeastern Utah produced over 16 million barrels of crude oil.
The northeastern part of Utah, often termed the Uinta Basin, is sitting on a massive deposit of waxy crude oil. This valuable but challenging hydrocarbon resource is tougher to transport and refine than traditional crude oil due to its characteristic high paraffin content. However, oil producers in the region have been keen on expanding their operations, which has led to demands for increased railroad capacity. This would ostensibly support the increased shipment of the waxy crude oil eastwards along the Colorado River. The oil and gas industry's objectives are to unravel new markets and refine the waxy crude oil in facilities equipped with the correct processing technology.