UPDATE 1-Phillips 66 may buy more railcars to move crude to U.S. refineries-CEO

Wed Oct 30, 2013 2:33pm EDT
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* Aims to rail more crude to East, West coast refineries

* Ramping East Coast crude by rail as US prices have fallen

* Refined products exports increasing

By Kristen Hays

HOUSTON, Oct 30 (Reuters) - Independent U.S. refiner Phillips 66 may buy more railcars to move inland U.S. and Canadian crude to its refineries on top of the 2,000 expected for delivery this year, Chief Executive Greg Garland told analysts on Wednesday.

The company has received 1,270 of those railcars so far in 2013, and Garland said the company was "thinking about buying some more railcars."

Rail opens access to cheaper crudes that refiners can run instead of more expensive imports, bolstering profits, when pipeline infrastructure is lacking.

Garland also said as Phillips 66 and other refiners with plants on the U.S. West Coast rail in more inland U.S. as well as heavy and light Canadian crude, Alaskan North Slope crude prices will fall, turning it into a so-called "advantaged crude" as well.   Continued...