Bakken

Fri, 2014-03-28 06:26Justin Mikulka
Justin Mikulka's picture

Feds Weaken New Oil-By-Rail Safety Regulations Days After Announcing Them

Oil train in Montana

Nine days after announcing new regulations designed to improve oil-by-rail safety, the Department of Transportation quietly weakened the rules for testing rail cars and exempted shippers of bitumen from having to meet the new regulations.

The department had been under pressure from industry since announcing new regulations in response to a round of testing on shipments of Bakken crude oil that found companies had classified crudes as less hazardous than they were in 11 of 18 rail cars.

The tanker cars that exploded in Lac-Megantic, Quebec, in July of 2013 were also carrying Bakken crude that was misclassified.  The result of these errors is that first responders can arrive at a scene and expect a crude oil fire and instead find a “river of napalm”, as they did in Lac-Megantic.

Thu, 2014-03-27 04:18Justin Mikulka
Justin Mikulka's picture

Oil Shipments Turn Albany Into “Houston on the Hudson” As Communities Across Country Fight Oil-By-Rail Proposals

Albany oil protest

Due to a massive increase in the movement of crude oil by rail in the past few years, communities across the country are facing the daunting prospect of becoming part of the oil industry’s infrastructure.

In Pittsburg, Calif., there is strong opposition to a proposed rail facility slated to bring in upwards of 242,000 barrels of Bakken crude daily. The state’s draft environmental review finds “significant and unavoidable risks of air pollution, greenhouse gas emissions, spills and accidents,” justifying resident’s concerns.

Meanwhile, Albany, N.Y., has quietly become home to increased oil shipments without any environmental review. A rail facility is currently receiving between 20 and 25 percent of the Bakken crude from North Dakota. As Trisha Curtis, an analyst at the Energy Policy Research Foundation, puts it, “Albany has become a big hub.” This has led to local residents referring to Albany as “Houston on the Hudson.”

In a victory for local residents, earlier this week New York’s environment agency announced it would require Global, the company proposing a heating facility for heavy crude at the Port of Albany, to disclose the source of the oil. 

Thu, 2014-01-30 12:47Justin Mikulka
Justin Mikulka's picture

New York Governor Cuomo Issues Executive Order on Oil by Rail Safety

Yesterday, New York Governor Andrew Cuomo issued an executive order directing several state agencies to review the risks posed by trasportation of crude oil by rail in New York. This issue has recently gained attention in Albany as the public has become aware of the large amounts of Bakken crude oil being shipped into Albany by rail, where it is then transferred to tankers that travel down the Hudson River.  

The Governor’s order requests many relevant actions but also acknowledges that most of this is under federal jurisdiction and thus there isn’t much the state can do about it.  Much of what the Governor is requesting has been suggested by the National Transportation Safety Board (NTSB) many times over the years, as the agency did again this past week.

The new suggested NTSB changes have the support of the American Association of Railroads. However, the companies that actually would be responsible for most of the costs associated with improving rail car safety are the oil companies themselves. The American Petroleum Institute responded to the new safety regulations
by pointing the finger at the rail companies, stating that, “the first step is to prevent derailments by addressing track defects and other root causes of all rail accidents.”

And the dance that has gone on around this issue for years continues on, resulting in more press releases, but no action.

Here is a video I produced about the oil by rail issue in New York: 


Mon, 2014-01-27 05:00Ben Jervey
Ben Jervey's picture

Oil on the Tracks: More Oil Spills from Railcars in 2013 than in Previous Four Decades [Updated]

As a direct result of the Bakken shale oil boom, more crude oil was spilled from rail cars last year than in the previous four decades combined. That’s according to a McClatchy analysis of federal data from the Pipeline and Hazardous Materials Safety Administration, which governs rail transport of liquid fuels like crude.

The analysis revealed more than 1.15 million gallons of crude spilled in 2013, considerably more than the 800,000 gallons spilled from 1975 (when the government started collecting data on spills) to 2012.

The rail industry likes to boast a 99.99% success rate in delivery shipments without incident, and that number remained consistent in 2013, with 1.15 million of the roughly 11.5 billion gallons shipped by rail being spilled. What did change was the volume of actual crude being shipped by rail.

As we’ve covered before, there is a massive boom in crude-by-rail throughout North America, with a nearly 2400-percent increase in crude railcar shipments in five short years from 2008-2012. As it turned out, 2013 was another record-setting year.

Mon, 2013-12-30 15:26Brendan DeMelle
Brendan DeMelle's picture

North Dakota Crude Oil Train Derails, Cars Explode, Residents Warned To Stay Inside

A train carrying crude oil from the Bakken shale derailed in Casselton, North Dakota today, with fiery results. Residents have reported multiple explosions, many have now been evacuated and others advised to shelter in place to avoid the toxic plumes of smoke enveloping the area.

ValleyNewsLive.com, the local media outlet, reports on Facebook that approximately 65% of residents have evacuated the area.

Watch footage of one of the explosions, courtesy of Dan Gunderson, recorded by KFGO listener, Darrin Radermacher: 


Reuters reports that:

Local residents heard five powerful explosions just a mile outside of the small town of Casselton after a westbound 112-car train carrying soybeans derailed. An eastbound 106-car train hauling crude oil ran into it just after 2 p.m. CST, local officials said. There were no injuries in the collision that left 21 rail cars on fire, according to BNSF.

Residents within 5 miles of Casselton were urged to evacuate to avoid contact with the smoke. Residents within 10 miles were asked to remain indoors.

Here is some of the media coverage of the disaster so far: 
Associated Press
ABC News
Gawker
ValleyNewsLive.com (ND)
Reuters

ValleyNewsLive.com has reporters on the scene, stay tuned for their updates via Facebook and on the website. Here is their latest report: 
Valley News Live - KVLY/KXJB - Fargo/Grand Forks

Stay tuned for more details.

Thu, 2013-11-07 09:00Sharon Kelly
Sharon Kelly's picture

Could California's Shale Oil Boom Be Just a Mirage?

Since the shale rush took off starting in 2005 in Texas, drillers have sprinted from one state to the next, chasing the promise of cheaper, easier, more productive wells. This land rush was fueled by a wild spike in natural gas prices that helped make shale gas drilling attractive even though the costs of fracking were high.

As the selling price of natural gas sank from its historic highs in 2008, much of the luster wore off entire regions that had initially captivated investors, like Louisiana’s Haynesville shale or Arkansas’s Fayetteville, now in decline.

But unlike natural gas prices, oil prices remain high to this day, and investors and policymakers alike remain dazzled by the heady promise of oil from shale rock. Oil and gas companies have wrung significant amounts of black gold from shale oil plays like Texas’s Eagle Ford and North Dakota’s Bakken.

Shale oil, they say, is the next big thing.

“After years of talking about it, we’re finally poised to control our own energy future,” President Obama said in his most recent State of the Union address. “We produce more oil at home than we have in 15 years.”

But once again, the reality may be nothing like the hype. Consider California.

Mon, 2013-07-22 10:00Ben Jervey
Ben Jervey's picture

Oil On The Tracks: The Crude-by-Rail Boom By the Numbers

The tragic oil train explosion earlier this month in Lac-Megantic, Quebec has focused a spotlight on the growing role of rail in the transportation of North American crude. But even after that tragedy, the extent of rail’s expansion in transporting oil is still little understood by the typical driver at the pump.

So DeSmog is going to dedicate a couple of posts expanding on an earlier post about this staggering boom in crude-by-rail – why it's happening, where the oil is going, what the risks are, and who stands to benefit most from the trend.  

On November 7, 2011, the Bakken Oil Express loaded up its first railcar with North Dakota crude and started churning south towards a Gulf Coast refinery. This wasn’t the first crude-by-rail shipment in U.S. history (John D. Rockefeller might have something to say about that), nor the first time in recent history that shale crude was shuttled out of the Bakken by rail.

But if you’re looking for a pivot point in the transportation trends of North American crude, the christening of the Bakken Oil Express is a fitting one.

The Bakken Oil Express is just one piece of a rapidly expanding network of North American oil tanker trains, but it's a particularly symbolic one, quickly brought online to handle the spiking production of North Dakota sweet crude. 

According to the Association of American Railroads (PDF), “In 2008, U.S. Class I railroads originated just 9,500 carloads of crude oil. In 2012, they originated nearly 234,000 carloads. Based on the more than 97,000 rail carloads of crude oil in the first quarter of this year, another big jump is expected in 2013.” 

That’s nearly a 2400-percent increase in five short years, and the upward trend looks to be growing even faster in 2013.

Sat, 2013-07-13 12:10Guest
Guest's picture

Lac Megantic Oil Train Explosion: Consequences of Deregulation

This is a guest post by Phil Mattera.

Canada’s Transportation Safety Board is far from reaching a conclusion on what caused an unattended train with 72 tanker cars filled with crude oil to roll downhill and crash into the Quebec town of Lac-Megantic, setting off a huge explosion that killed at least 15 people. But that hasn’t stopped Edward Burkhardt, the chief executive of the railroad, from pointing the finger at everyone in sight — except himself.

Burkhardt first tried to blame local firefighters who had extinguished a small blaze in the train before the larger accident, and now he is accusing his own employee — the person who was operating the train all by himself — for failing to apply all the hand brakes when he parked the train for the night and went to a hotel for some rest after his 12-hour shift.

Whatever were the immediate causes of the accident, Burkhardt and his company — Montreal, Maine & Atlantic (MMA) Railway and its parent Rail World Inc. — bear much of the responsibility.

Burkhardt is a living symbol of the pitfalls of deregulation, deunionization, privatization and the other features of laissez-faire capitalism. He first made his mark in the late 1980s, when his Wisconsin Central Railroad took advantage of federal railroad deregulation, via the 1980 Staggers Rail Act, to purchase 2,700 miles of track from the Soo Line and remake it into a supposedly dynamic and efficient carrier. That efficiency came largely from operating non-union and thus eliminating work rules that had promoted safety.

Mon, 2013-04-29 11:44Sharon Kelly
Sharon Kelly's picture

Faster Drilling, Diminishing Returns in Shale Plays Nationwide?

Today's shale gas boom has brought a surge of drilling across the US, driving natural gas prices to historic lows over the past couple of years. But, according to David Hughes, geoscientist and fellow at the Post Carbon Institute, in the future, we can expect at least the same frenzied rate of drilling – but less and less oil and gas from each well on average.
 
“It’s been a game changer,” Mr. Hughes said of the shale gas boom at a talk last week in Maryland, “but I would say a temporary game changer.”
 
After crunching data from hundreds of thousands of oil and gas wells across the U.S., Mr. Hughes found that just five of the country's 30 best shale plays have been responsible for 80 percent of domestic shale gas production: the Haynesville shale in Louisiana; the Barnett shale in Texas's Fort Worth region; the Marcellus shale, which underlies New York, Pennsylvania, and parts of Maryland and West Virginia; the Fayetteville shale in Arkansas; and Oklahoma's Woodford shale. When it comes to natural gas, all of the other plays pale in comparison to these five regions.
 
But the data reveals that in four of these top five shale-gas plays, drillers have been less and less successful in hitting the next big strike-it-rich well. Average well productivity in four of the five best American shale plays has been falling since 2010, Hughes found. The exception, at least for now, is the Marcellus.
 
Mon, 2012-10-08 10:25Ben Jervey
Ben Jervey's picture

Oil On the Tracks: How Rail Is Quietly Picking Up the Pipelines' Slack

We’ve talked a lot here on DeSmogBlog about oil (and tar sands crude) pipelines. You know, like the Keystone XL, which TransCanada is currently ramming through Texas, using whatever means necessary (including violence), and Enbridge's Northern Gateway, which was just declared “dead” by one of Canada's top newspapers.

And we’ve talked quite a bit about coal trains. All for very good reason. But we haven’t ever delved into the growing trend of shipping oil by train. Trains are a crucial – and growing – part of oil industry infrastructure, so it’s worthwhile to take a step back and get some perspective on this remarkable system. Understanding oil trains will help you understand, for instance, why oil markets are paying little attention to the pipeline debates.

Let’s start with the raw numbers.

Every week, over 17,000 carloads of oil are shipped in the U.S. and Canada. With roughly 600 to 700 barrels of oil in each carload, that’s between 1.4 and 1.6 million barrels of oil on the U.S. and Canadian rails every day. And these numbers are growing fast. This chart says it all.

Pages

Subscribe to Bakken