Most oil and petroleum products are moved to refineries and consuming areas by pipeline, which is both the safest and most economical means of transporting them. However, due to a shortage of pipeline capacity, more and more oil and petroleum products are being moved by rail, truck, and barge. Those shipments almost doubled in 2012, and they are continuing to increase to move crude oil from the shale formations in North Dakota and Texas, and oil sands in Canada to U.S. refineries. Between 2011 and 2012, oil delivered to refineries by trucks increased 38 percent, crude moved on barges increased 53 percent and rail deliveries quadrupled. Because the nation's pipeline infrastructure has not kept pace with growing domestic oil production, the market has had to rely increasingly on alternative transportation options.
Source: Energy Information Administration