Category:

Rail shipments of oil here to stay, IHS finds

IHS Energy finds rail an "enabler" of growth in North American crude oil production.. (Photo: Daniel J. Graeber) More than 10 percent of the oil transported in North American will be carried on the region’s rail system at its peak, analysis from IHS Energy finds. The Organization of Petroleum Exporting Countries finds the world needing less of its crude oil in part because of the glut in the North American market brought on by shale. The United States alone is producing around 9 million barrels of oil per day and, with the existing pipeline network lacking the capacity to handle the load, those in the industry are turning to rail as an alternate transit method. "Rail transport of crude oil has become an enabler of growth in North America, playing a crucial role as pipeline capacity has struggled to keep pace with the rapid rise of North American oil […]

Posted On :
Category:

US spending bill would speed up crude-by-rail rule, stem more product reserves

Washington (Platts)–10Dec2014/455 pm EST/2155 GMT The US Department of Transportation would face a January 15 deadline to issue its long-awaited crude-by-rail safety regulations, under a must-pass spending bill crafted by Republican and Democratic lawmakers from both chambers of Congress. The $1.1 trillion bill also would restrict the US Department of Energy from creating any crude product reserves without the consent of the congressional appropriations committees. In addition, it would block the US Fish and Wildlife Service from listing the greater sage grouse and three other grouse species as a threatened or endangered species for a year, opening up significant acreage in the Western US to oil and gas development. Those three measures are among several riders attached to the bill, which must pass to keep the federal government open past Thursday. The House of Representatives is scheduled to vote on the bill Thursday, while the Senate is scheduled to […]

Posted On :
Category:

North Dakota commission approves crude conditioning order

Washington (Platts)–9Dec2014/524 pm EST/2224 GMT North Dakota’s Industrial Commission on Tuesday approved an order requiring Bakken crude oil to be conditioned before it is shipped by rail. The order, which had been delayed for a month, was approved unanimously by the commission, which includes Governor Jack Dalrymple, Attorney General Wayne Stenehjem and Agriculture Commissioner Doug Goehring. Under the order, crude oil cannot have a vapor pressure that exceeds 13.7 psi, 1 psi below the national standard of 14.7. The order, which was delayed for a month as the commission collected additional public comment and made technical corrections, faced opposition from the state’s oil and gas operators, including Hess, Marathon Oil and Continental Resources. These companies claimed the order could cost them millions of dollars, impact infrastructure projects and set up jurisdictional clashes with federal officials. Corrections to the previous order included lowering temperature requirements when companies claimed earlier temperature […]

Posted On :
Category:

Oil Trains Hide in Plain Sight

A Norfolk Southern Corp. train in a refinery in Delaware, waiting to unload its cargo… ENLARGE A Norfolk Southern Corp. train in a refinery in Delaware, waiting to unload its cargo of crude oil from North Dakota. Russell Gold/The Wall Street Journal NEWARK, Del.—Early last year, a new kind of pipeline full of volatile oil appeared in this college town, halfway between Philadelphia and Baltimore. If it had been a traditional pipeline, there would have been government hearings and environmental reviews. There would be markers or signs along the line’s route and instructions for nearby residents on how to react in an emergency. A detailed plan for responding to a spill would be on file with the federal government. None of that happened here in Newark. In fact, nobody initially notified the city’s fire chief about the new line, which can carry more than a hundred thousand barrels of […]

Posted On :
Category:

Nearly 3,000 Canadian Railroad Cars No Longer Transport Oil, Chemicals

A firefighter stands close to the remains of a train wreckage in Lac-Mégantic, Quebec, on… ENLARGE A firefighter stands close to the remains of a train wreckage in Lac-Mégantic, Quebec, on July 8, 2013. Reuters Nearly 3,000 Canadian railroad tank cars are no longer carrying dangerous goods after falling foul of the beefed-up safety regulations that followed last year’s fatal derailment in Quebec. Canada’s Transport Department said 2,879 tank cars were deemed too risky to carry goods such as oil and chemicals in the country, according to documents presented in Parliament last week. In late April , Canada gave rail operators 30 days to stop using the least crash resistant types of DOT-111 tanks cars to transport such goods. Those DOT-111s still transporting dangerous goods have to be refitted with thicker steel and stronger reinforcements within a three-year period, or else be pulled off the rails. The DOT-111 was […]

Posted On :
Category:

Why a small North Dakota town is taking on Big Rail

ENDERLIN, N.D. (Reuters) – After her shift at the TraXside Cafe in the southeast North Dakota hamlet of Enderlin, all Karla Souer wants to do is go home. Unfortunately for the 38-year-old waitress the commute, which should only last a minute or two, can take a half-an-hour. That’s because, chances are, there’s a Canadian Pacific Railway Ltd train blocking the tracks somewhere on her route. She has a lot of company. Partly thanks to North Dakota’s energy boom, twenty-eight of the railroad’s trains now traverse the city every day. Each carry hundreds of tank cars filled with oil or grain. Some idle as long as four hours, inconveniencing motorists, stranding pedestrians and posing logistical challenges for ambulances and firefighters. Desperate for a solution, Enderlin’s city councilors last month banned train breaks longer than 10 minutes. The railroad has, in turn, sued the city of nearly 900 in federal court. […]

Posted On :
Category:

North Dakota reviews oil train safety measures

North Dakota officials review rail safety after second derailment in less than a year. (Photo: Daniel J. Graeber) Rail operators in North Dakota have taken a good step forward on safety, though they’re likely to face further scrutiny, Gov. Jack Dalrymple said. Dalrymple met with officials from BNSF Railway to discuss rail safety in the state. The rail company, the government said, is facing pressure after two derailments near the town of Casselton in the same calendar year. Around 1 dozen empty crude oil tankers derailed Nov. 13 in Casselton from a BNSF-operated train. About 950 barrels of oil spilled when two trains operated by BNSF collided and derailed near Casselton in late December. The governor said the rail company outlined a series of ways it would ensure safety in and around Casselton following the latest derailment. "These actions are a good step forward to preventing further incidents and […]

Posted On :