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Ill. oil-train derailment involved cars safer than federal standard

Derailed train continues to burn in Illinois GALENA , Ill., March 6 (UPI) — Two cars of an oil train carrying Bakken crude from North Dakota caught fire after a derailment in near Galena, Ill., Thursday, with an evacuation of homes within a one-mile radius. The train derailed near the confluence of the Galena and Mississippi Rivers, near Illinois’ border with Wisconsin and Iowa. There were no reported injuries. BNSF Railway in a statement said the tank cars involved were the "CPC-1232 model that were unjacketed with half-height head shields." The newer 1232 model was designed four years ago as part of voluntary safety upgrades adopted by the industry. Sixteen of the 105 cars of the train, all but two carrying crude oil, left the tracks, and two ignited, Galena City Administrator Mark Moran said. The derailment is the third in three weeks. In February, trains carrying crude oil […]

Posted On : Published By : Tom Whipple
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Oil on Train in Illinois Derailment Shipped by Mercuria Energy

ENLARGE Railcars continued to burn at the scene of a freight train derailment south of Galena, Ill., on Friday. Photo: Associated Press The crude oil aboard the train involved in a fiery derailment Thursday in Illinois was shipped by a big energy-trading company based in Switzerland. The firm, Mercuria Energy Trading Inc., bought the oil in North Dakota and was delivering it to refineries in Philadelphia, according to people familiar with the matter. The train, operated by BNSF Railway Co., held about 70,000 barrels of oil from the Bakken Shale in 103 tanker cars. Federal officials said 21 of the cars derailed near Galena, Ill., about 160 miles west of Chicago. Seven of them were punctured or had holes in their steel skins. About 35 crude trains traveled through the area every week, according to state data. The oil caught fire, sending a thick plume of black smoke and […]

Posted On : Published By : Tom Whipple
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To Drill or Not to Drill: That is the Question

Here’s a Jeopardy!- style question for you: “Eight different species of whales can be seen in these two American seas.” Unless you’re an Iñupiaq, a marine biologist, or an Arctic enthusiast like me, it’s a pretty good guess that you can’t tell me what those seas are or what those whales are either. The answer: the Chukchi Sea and the adjacent Beaufort Sea, off Arctic Alaska, and you can commonly spot bowhead, beluga, and grey whales there, while fin whales, minkes, humpbacks, killer whales, and narwhals are all venturing into these seas ever more often as the Arctic and its waters continue to warm rapidly. The problem, however, is that the major oil company Royal Dutch Shell wants to drill in the Chukchi Sea this summer and that could, in the long term, spell doom for one of the last great, relatively untouched oceanic environments on the planet. Let […]

Posted On : Published By : Tom Whipple
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Iraq, Libya nudge Brent crude prices up

Sign up for our daily Energy Newsletter Crude oil prices mixed Thursday. Photo by sakhorn/Shutterstock WASHINGTON, March 5 (UPI) — Brent crude oil prices moved higher early Thursday as deteriorating security situations in Iraq and Libya countered increasing U.S. inventories. The global benchmark briefly topped $61 per barrel for the April contract before moving to $60.87, 32 cents above closing price Wednesday. Libya’s state-owned National Oil Corp. declared force majeure on 11 oilfields Wednesday, releasing it from production commitments due to the recent spate of attacks from militant groups including the Islamic State. This after a recent rise in production due to restarting operations at the Sarir field. Iraqi forces have been engaged this week in an offensive to retake Tikrit and its nearby oilfields from Islamic State forces. Saudi Arabia on Tuesday raised the price of its oil for delivery to the United States and Asia, and the […]

Posted On : Published By : Tom Whipple
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Volatility draws billions into oil funds

LONDON/NEW YORK (Reuters) – Billions of dollars are pouring into oil exchange-traded funds as investors, many of them small savers more familiar with stocks than commodities, risk big losses and focus on the chance of huge rewards. Five of the biggest oil ETFs have seen their assets more than quadruple since July to $5.4 billion as the oil market has had a roller-coaster ride, collapsing by 60 percent then rallying by almost a third. ETFs, designed for investors who cannot or will not buy and sell oil directly themselves, offer easy access and exposure to oil volatility because they are based on traded futures markets. Many small investors such as pensioners, hobby traders, and savers on fixed incomes are attracted to oil ETFs, which can be designed to take advantage of price rises or falls. But the volatility and structure of the underlying markets also make such investments dangerous […]

Posted On : Published By : Tom Whipple
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Oil falls in volatile trade on supply worries, dollar and Iran

NEW YORK (Reuters) – Oil closed lower on Thursday in volatile trade, as a soaring dollar and the U.S. pursuit of an Iranian nuclear deal offset earlier gains from supply concerns in Libya and Iraq. Libya’s declaration of force majeure on nearly a dozen of its oilfields due to security concerns and arson attacks by Islamic State militants on Iraqi oil wells helped prices climb during the European session. In New York trade, the market came off its highs after the dollar hit 11-1/2 year highs against the euro, weighing on oil prices denominated in the greenback. Washington’s pursuit of a nuclear agreement with Tehran, which could end sanctions against Iran and bring more oil from the OPEC member into an already flooded market further dragged on prices. Even so, market bulls convinced oil had hit a bottom after the June-January selloff that had knocked 60 percent off prices […]

Posted On : Published By : Tom Whipple
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Natural Gas Hits One-Week High on Strong Winter Demand

By Timothy Puko Natural-gas futures surged to their highest point in a week on unexpectedly strong winter demand. The front-month April contract settled up 7.2 cents, or 2.6%, at $2.841 a million British thermal units on the New York Mercantile Exchange. It was the third-straight session of gains and the highest closing price since Feb. 25. The lingering arctic chill led to the largest ever draw from stockpiles for the second half of February, the U.S. Energy Information Administration said. Storage levels fell by 228 billion cubic feet in the week ended Feb. 27. That is 3 bcf more than the 225-bcf consensus average of 15 forecasters surveyed by The Wall Street Journal. Half of U.S. homes use natural gas for heating fuel, so single-digit temperatures like those lingering this week are big drivers for demand. February was the coldest in 30 years, according to Commodity Weather Group LLC. […]

Posted On : Published By : Tom Whipple
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Libya declares force majeure on 11 central oilfields

The El Sharara oil field in Libya resumed operation in December after being shut down by militants in November. Photo by Javier Blas/CC WASHINGTON, March 5 (UPI) — Libya declared force majeure on 11 oilfields after a series of Islamic State attacks on facilities in the country’s central region. The state-owned National Oil Corp. posted a statement on its website declaring force majeure, saying it could no longer ensure production at the facilities due to the deteriorating security situation. The move frees the company of liability. Two fields, Bahi and Mabruk, had been attacked last month and were seized again Monday and Tuesday by unknown militants. Gunmen at Mabruk claimed to represent the Islamic State militant group. A third field, Dahra, was attacked late Tuesday. Col. Hakim Maazab, who commands oil guards in the region, said Wednesday the militants had withdrawn from Mabruk , after destroying oil tanks and […]

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Islamic State crisis: Thousands flee Iraqi advance on Tikrit

Iraqi government forces have been slowed by roadside bombs and booby traps A military operation to retake the Iraqi city of Tikrit from Islamic State (IS) has caused about 28,000 people to flee their homes, the UN says. Those displaced are headed towards the city of Samarra, the UN said, but many families are stranded at checkpoints. Aid convoys carrying relief supplies are being sent to the area by UN agencies to help those affected. The operation to retake Tikrit, involving some 30,000 soldiers and Shia militiamen, is now in its fourth day. They are trying to encircle the IS fighters, but their advance has been slow due to the roadside bombs and booby traps planted since the city was overrun last June, says the BBC’s Jim Muir in Beirut. Iraqi jets and helicopters are supporting the ground troops but US-led coalition aircraft are not involved. Militants also set […]

Posted On : Published By : Tom Whipple