He opposed moving oil by pipeline, moving
oil by rail (duh!)
But what makes transporting Canadian crude
oil by rail attractive to investors?
As firefighters continue to fight the train fire and search for the 40 50 missing people, this explosion has already rekindled the debate over transporting
oil by rail or by pipeline.
But that transporting
oil by rail is more polluting than a pipeline is not a compelling argument for allowing the pipeline.
Ironically, two of the facilities that would handle
oil by rail were originally built to supply renewable fuels.
Based on the initial description of this product, it appears that it could alleviate many of the risks involved with moving tar sands
oil by rail.
Further, the pipeline would help the environment, because moving oil by pipeline produces 42 percent fewer emissions than transporting
oil by rail, which is how the oil is being transported in lieu of the new pipeline.
Yet now that the pipeline application has been denied, the additional cost of transporting
oil by rail costs would come into play.
Since 2010, transportation of crude
oil by rail in North America has grown significantly from 23.8 million barrels to 318.8 million barrels in 2015.
Furthermore, the idea that pipelines are a safer alternative to rail is a false dichotomy — the oil industry does not intend to stop transporting
oil by rail if they manage to force their pipeline through, as they hope to transport the oil by both pipeline and rail.
In the Good Yglesias category, we have «the spice must flow» problem in that stopping the Keystone XL pipeline and other pipeline - fighting as led to a boom in shipping
oil by rail.
By one estimate,
oil by rail in Canada has now reached 300,000 barrels per day, more than half of Keystone capacity: bit.ly / 13uK1xw
Total
oil by rail volumes in California almost doubled in 4Q13 versus 3Q13 to 2.83 million barrels.
[3] See Association of American Railroads» (AAR) December 2013 paper «Moving Crude
Oil by Rail», available online at: https://www.aar.org/keyissues/Documents/Background-Papers/Crude-oil-by-rail.pdf.
To further enhance emergency response efforts, DOT is also recommending that railroads continue to commit resources to develop specialized crude
oil by rail training and tuition assistance program for local first responders.
The emergency meeting was held to evaluate and consider wide - ranging proposals to further enhance railroad safety including the safe shipment of crude
oil by rail.
PHMSA and the Federal Railroad Administration have issued several safety advisories related to the safe transport of crude
oil by rail, including the recent January 2 Safety Alert and is currently engaged in the ongoing rulemaking to improve the design of the DOT 111 tank car.
«Today we are raising the bar for shipping crude oil on behalf of the families and communities along rail lines nationwide — if you intend to move crude
oil by rail, then you must test and classify the material appropriately,» said DOT Secretary Anthony Foxx.
Title: DOT Issues Emergency Order Requiring Stricter Standards to Transport Crude
Oil by Rail Link: https://www.transportation.gov/briefing-room/dot-issues-emergency-order -...
The line would probably diminish the need to ship
oil by rail to East Coast refiners, a trend under scrutiny since the derailment at Lac Megantic.
«We are the first to construct estimates of air pollution and greenhouse gas costs for movements of crude
oil by rail and pipelines,» said Clay.
Using data of crude oil transported out of North Dakota in 2014, Muller says the team found «that air pollution and greenhouse gas costs of shipping crude
oil by rail are much larger than spill and accident costs.»
66 actions have been implemented to strengthen standards, regulations and procedures to make the transport of crude
oil by rail and water in New York safer, and to improve spill preparedness and response.
The Keene town board adopted a resolution of the board last Monday evening calling on the U.S. Department of Transportation, the US Environmental Protection Agency, the NY DOT and the NY DEC to impose a moratorium on transport of Bakken Crude
Oil by rail from Montreal to Albany, until a comprehensive study determines the public health, safety, economic and environmental impacts of a derailment.
He said the pipeline would not reduce the controversial shipment of Bakken
oil by rail or barge, adding that statistics from the Federal Pipeline and Hazardous Materials Safety Administration showed that pipelines had a higher spill rate per mile than any other form of oil transportation.
Since the July 2013 Lac - Megantic fatal train disaster and other recent incidents involving
oil by rail, Transport Canada has faced questions about whether it adequately addressed safety oversight concerns surrounding the transportation of dangerous cargo, which were repeatedly raised in internal audits.
The memo, obtained by the federal Liberals, discussed economic factors surrounding the transportation of
oil by rail, but didn't flag any safety concerns.
He actually vetoed the building of
an oil by rail terminal in Vancouver Washington.
«We know that the alternative to a new pipeline would be more
oil by rail, more oil by trucks.
If you're in the oil transportation business, these are negative impacts, whether you move
oil by rail or by pipeline.
But it turns out, no one is interested in transporting
oil by rail across B.C. — or so says CN.
«Simply put, transporting
oil by rail — or by any method — is a disaster waiting to happen.»
Not exact matches
As the North American
oil transportation system continues to evolve, with new pipelines, reversals of existing lines and a growing role for
oil -
by -
rail, what is clear is that the North American
oil market will eventually settle into a new era of pricing relationships which will be very different than those which prevailed prior to 2008.
CALGARY, Alberta, May 2 - Alberta will hold talks with
rail operators and
oil producers aimed at smoothing the path to get more crude moving
by rail to market amid a transportation bottleneck in the Western Canadian province, Alberta's energy minister said on Wednesday.
There have been a number of high - profile derailments of trains — including one
by UP — carrying shale
oil, much of which is produced in new drilling areas without established pipeline networks and must be moved
by rail.
While manufacturing has shown a little weakness, the biggest difference
by far is in mining — and that's where the
Oil patch weakness shows up, as well as coal and metals production for export (recall how awful
rail and steel have been in the Weekly Indicators for the last 4 months).
«I'm really confident that as we move into the second half this year and into the first half of 2019, we're going to be seeing very material volumes of
oil moving
by rail,» he added.
Oil transportation
by rail has grown astronomically, to about 140,000 carloads of crude in 2013 from 500 carloads in 2009, according to the Railway Association of Canada.
Railways, who added crude
by rail capacity earlier this decade only to have the market vanish as pipeline space opened up, have been slow to move back in the
oil transport business, asking producers to sign longer - term deals.
Since 2011, the
rail industry has voluntarily adopted tougher safety standards for all new cars, but with literally only a handful of tank car - makers in North America and a huge boom in
oil -
by -
rail shipments, demand far outstrips supply.
And with several of CP's business lines (notably
oil shipments
by rail) enjoying robust growth, the wind seems to be at his back.
McKenna also told Clinton that Canada is tripling the amount of
oil that's transported
by rail because of a lack of pipelines.
Canada's
oil will be extracted and marketed regardless of Keystone, the report contended, and could be shipped to the U.S.
by rail, which has higher emissions.
The transit costs of moving crude
by rail from North Dakota across the country tips the balance in favor of foreign
oil.
Crude -
by -
rail shipments are expected to ramp up in the second half of this year and into the first half of next year to «very material volumes of
oil,» Pourbaix said, adding price discounts will improve but will likely remain higher than usual because
rail costs more than pipeline transport.
This stance is interesting since the industry has recently been seen to downplay the role of new pipelines in enabling oilsands development given the rise of
oil -
by -
rail.
The Paris - based IEA forecasts in its latest
oil markets report that crude -
by -
rail exports will grow from 150,000 barrels a day in late 2017 to 250,000 barrels a day this year and then to 390,000 barrels a day in 2019.
Raitt's three - year timeline to fully dispose of older DOT - 111A tankers (and immediate phase - out of 5,000 of the most vulnerable cars) is going to be a difficult one to meet given the existing capacity for suppliers to build new tankers, as well as the desire of
oil and gas companies to continue the exponential increases in
oil -
by -
rail shipments into the future.
Would they rather see Alberta's
oil move
by pipeline or
by rail, the much more environmentally hazardous Option B?
A company that supplies steel tubing to
oil and gas companies in the Rocky Mountain region revolutionized the way the firm communicates information about inventory and supplies
by networking storage yards along
rail routes.