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Oil and Gas Freight Transportation Alternatives

Hydraulic fracturing (or fracking) and horizontal drilling techniques have led to rapid new development in the oil and natural gas (O&G) industries in many areas of Texas and in other shale formation areas across the United States. Between 2007 and 2014, an increasing demand for O&G products in a favorable market (high prices for Texas O&G products with favorable marginal prices compared to worldwide benchmarks) resulted in dramatically increased drilling activity and associated freight traffic on Texas roadways in energy production areas moving drilling equipment, fracking sand, water, and other energy-development-related freight. Increased roadway wear-and-tear was one consequence of that activity. This study explored the potential options regarding the use of rail and pipeline infrastructure to address the growing costs of roadway rehabilitation in the energy production areas of Texas.

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