This is a very marginal change, and may affect Canada, more than US fracking operations, because it is my understanding that some of the Canadian oil is more costly to produce and fairly heavy, with lower distillate yields. Why would you want to pay more for oil that's shipped further and produces less gasoline?

It is my understanding that most of the US (and much of the Canadian) fracking oils are extremely "light/sweet" crudes with a very high distillate content, with lower production costs, located closer to the refineries. And, I've been told by my professors, that in the free market system, most refiners would probably be more likely to want to pay less (including transport costs) for oil producing more gasoline.

The problem with oil by rail, is safety, and safety is a problem due to higher flammability and higher potential for explosion. This increased danger of fire and/or explosion is due to higher distillate content, making it more flammable, and a high natural gas and CO2 content, making it much more effervescent, and thus, more explosive.

Several States and Canada are looking at requiring degasification prior to shipment to reduce those risks. New technologies are being actively developed using polymers to remove CO2 from natural gas, that also show promise for fracking oils, and natural gas "degasification" can be done, too. Yes, this will likely increase the "marginal cost" of fracking petroleum production, by a small amount. But, it is not likely to affect overall long term production.

If degassing is required, this stuff will be much safer to transport, by any mode, be it rail, highway, barge, or pipeline.

AS I predicted several months ago, crude has risen back up some from the extreme lows of January, and fracking will still likely make the US the leading oil producer in the next two years.

Fracking has also allowed the US, mostly through natural gas conversion of power plants, with a minor amount due to uto mileage requirements, to almost meet the "targets" for "voluntary" CO2 Kyoto treaty levels... One of only a few nations to even come close.....

Just as Drake, Rockefeller, and the American oil industry "Save(d) the Whale" from certain extinction by 1880, with the introduction of cheaper and cleaner kerosene, America's oil industry is actually the only reason we have kept US CO2 emissions so low.......?

Cheaper electricity, cleaner air, cheaper gas, more alternative vehicles, more money in our pockets, and a major new profit center for the RR's completely reversing a decline in rail in the Dakota's, that will, in the long run, also benefit the farmers.....

Ain't it all just awful?

Now, I need to hear a good rebuttal, from the usual doom and gloom, "evil gubmint", climate change deniers, anti vaxxers, PETA loons, car haters, train haters, and conspiracy nuts, so flame away...........