Question: The apparent answer would be for railways to construct more track and purchase additional operational equipment in order to manage the increasing volume of traffic.
The apparent answer would be for railways to construct more track and purchase additional operational equipment in order to manage the increasing volume of traffic. Investment in railways should take precedence over investment in transmission lines. Additionally, the use of trains for the transportation of commodities has increased as a result of a lack of sufficient infrastructure for oil and gas pipelines between these two regions and processing facilities in the United States. Because of the rapid increase in traffic volume, the railways that service these regions were forced to close due to a shortage of vehicle capacity and track capacity, respectively. Because small oil and gas producers in North and Southern Dakota have much greater operating costs than their counterparts in OPEC countries, a drop in the global price of crude oil may force many of them out of the industry. As a result of their departures, railroad companies may incur significant financial losses. The goal of the Organization of the Petroleum Exporting Countries (OPEC) was to maintain oil production levels that increased the profitability of fracking and oil well boiling in the United States. Investing in equipment and track, on the other hand, is a long-term investment that may last for decades if the equipment and track are kept in proper condition. As a result, these investments need a consistent amount of money over an extended period of time. In order to serve these communities, the railroads were obliged to make a tough choice. While billions of dollars in new capital investment will be required to keep up with demand, it is possible that increasing income in the near future may generate trillions of dollars in additional revenue. However, railways were worried about the impact of OPEC actions on oil prices on their business. During the last several years, the number of rail imports and exports to and from Oklahoma as well as southern Canada has grown significantly. Petrol has been sent from afar, while water, sand, and other necessary supplies have been brought in from outside. Following the announcement by the Organization of Petroleum Exporting Countries (OPEC) that its members will increase their oil output, global oil prices are expected to fall.
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