Category Archives: Volatility

Bakken Crude, Crude By Rail, Derailment, Explosion, Fire, Oil spill, Pipeline transport, Tank car design, Tar sands crude, Volatility

The U.S. Has An Oil Train Problem

Repost from ThinkProgress

The U.S. Has An Oil Train Problem

By Samantha Page, Dec 3, 2015 2:43 PM
In this Feb. 16, 2015 photo, provided by the Transportation Safety Board of Canada, workers fight a fire after a crude oil train derailment south of south of Timmins, Ontario. CREDIT: AP PHOTO / TRANSPORTATION SAFETY BOARD OF CANADA

Recipe for disaster: Put a flammable substance under pressure into a metal container, then rumble it at 50 miles an hour down a metal rail, across hundreds or even thousands of miles, through towns and cities and over bodies of water. Repeat, as necessary.

The United States is coming to the end of the costliest year on record for oil train explosions, Bloomberg News reported Tuesday, as crude oil travelling by rail has reached its highest levels ever. This past year saw a town in North Dakota evacuated after a May derailment and explosion; another major derailment and explosion in Illinois in March; and a February derailment and explosion in West Virginia, which destroyed a home, forced the evacuation of 1,000 people, and caused the governor to declare a state of emergency.

oil-overtime

CREDIT: EIA DATA

At the beginning of 2010, the United States was shipping about one million barrels of oil by rail every month. By mid-2014, though, that number was around 25 million. Imports from Canada increased 50-fold during that time. The resulting surge in accidents — including a Quebec derailment in 2013 that killed 47 people — prompted the Department of Transportation to enact new safety rules in May 2015.

But those rules didn’t prevent costs from ballooning from $7.5 million in damage in 2014 to $29.7 million in 2015, according to Department of Transportation data.

crude by rail

CREDIT: ENERGY INFORMATION ADMINISTRATION

Still, carloads of petroleum products have declined significantly since their peak in December 2014, and Bloomberg reporter Mathew Philips suggests that we are unlikely to see this amount of crude by rail in the future.

The reasons for this decline are two-fold. The United States sees crude by rail mainly from two places: Alberta, Canada’s tar sands and the Bakken oil fields of North Dakota, which are affected by two very different scenarios. The Alberta tar sands are expensive to develop and are far from refineries and consumers. That means developers who have already invested will turn to rail as a way to recoup expenses, but it is not their first choice. Without available, low-cost transportation, new development in the tar sands is economically unfeasible, Oil Change International’s Lorne Stockman told ThinkProgress. According to his group’s report “Lockdown: The End of Growth in the Tar Sands,” without more pipelines, tar sands development is going to hit a wall. (In other words, the group agrees with climate activists who say the Keystone decision really will keep more oil in the ground.

But even though stopping pipeline expansion could inhibit oil extraction in Canada, it’s not so simple in the United States. Developing the Bakken fields is significantly less expensive than in Alberta, and producers have — for the past five years — had no problem using rail to bring their cheap crude to the coasts, where it competed with more expensive overseas oil. Now that overseas prices have dropped, producers are building out more pipeline infrastructure, but without it, they could still compete on the open market.)

“It’s hard to say that if you don’t build the pipe, it won’t go by rail,” Stockman said. “We’ve seen in the last five years that it does go by rail.”

He admits this is probably not what anti-pipeline activists want to hear.

“There are local issues around [pipelines], landowner issues, and I totally sympathize with that,” he said. The answer just isn’t going to be found in infrastructure. “If you want to stop production in the Bakken, you should make the producers pay for their pollution.”

The fact is, there is no safe way to transport oil. Studies have shown that while trains spill more often, pipelines spill more oil per incident. When the new regulations came out in 2014, environmentalists — and some legislators — criticized them as not going far enough. Because the realities of transporting an explosive material are pretty scary: while the new regulations lower allowable speeds, tests have shown that the cars can be punctured travelling at less than 20 miles an hour. The new speed limit is 50 miles an hour.

This week, New York Attorney General Eric Schneiderman filed a petition to reduce the pressure of crude rail cars.

“In New York, trains carrying millions of gallons of crude oil routinely travel through our cities and towns without any limit on its explosiveness or flammability – which makes crude oil more likely to catch fire and explode in train accidents,” Schneiderman said in an emailed statement. “The federal government needs to close this extremely dangerous loophole, and ensure that residents of the communities in harm’s way of oil trains receive the greatest possible protection.”

Bakken Crude, Bomb Trains, Crude By Rail, Derailment, Explosion, Fire, Oil stabilization, Rail Safety, Volatility

VIDEO: Government, Industry Ignore Scientific Case For Improving Crude By Rail Safety, Let Bomb Trains Roll On

Repost from DeSmogBlog

VIDEO: Government, Industry Ignore Scientific Case For Improving Crude By Rail Safety, Let Bomb Trains Roll On

By Brendan DeMelle, September 17, 2015 – 03:58


Since the tragic Bakken oil train accident that extinguished 47 lives in Lac-Megantic, Quebec in July 2013, seven more Bakken oil trains have derailed, resulting in accidents involving large fires and explosions. We now know that oil produced in North Dakota’s Bakken Shale formation is extremely volatile due to its high natural gas liquid content — resulting in the “bomb train” phenomenon.

DeSmog’s new investigative video, written and produced by Justin Mikulka, details a coordinated effort by the oil industry, members of the U.S. Congress, regulators and the Department of Energy to challenge the known science of crude oil characteristics with the goal of delaying or avoiding any regulatory changes requiring Bakken crude oil stabilization, a safety measure that would protect the millions of people currently living in bomb train blast zones.

Stabilization is the process that removes the volatile natural gas liquids from the crude oil, resulting in a “stable” petroleum product with greatly reduced volatility and flammability.

DeSmog has reported extensively on the oil-by-rail policy battle, including an investigation that revealed the direct role of the White House in working with North Dakota regulators to avoid any requirements for oil stabilization for the Bakken crude.

The success of their misdirection campaign is evident — the mainstream media is largely overlooking this critical issue when the public needs referees to ask the tough questions on this vulnerability in our crude oil by rail protocols. Yet a Wall Street Journal article this week on how to make oil safe to transport didn’t even mention stabilization.

The video uses archival information from American Petroleum Institute videos, Congressional hearing testimony, news clips and more to reveal how the oil industry has avoided regulation in order to continue transporting dangerous Bakken crude by rail at maximum profit.

Warning: This video contains science, humor and political theater all in one — a volatile mix indeed!

WATCH: DeSmogCAST: The Science of Bomb Trains

Bakken Crude, Crude By Rail, Derailment, Emergency Readiness & Response, Federal Regulation (U.S.), Fire, Funding for emergency response, Hazmat notification, Massive increase in crude-by-rail, Per-barrel tax, Public safety funding, Rail inspection, Rail Safety, Spill, State regulation, Track maintenance, Volatility

States Step Up Scrutiny of Oil Train Shipments

Repost from GOVERNING The States and Localities

States Step Up Scrutiny of Oil Train Shipments

Some states are looking to prevent more derailments and spills, but the freight industry doesn’t want more regulation.
 By Daniel C. Vock | August 26, 2015
In 2014, several CSX tanker cars carrying crude oil derailed and caught fire along the James River near downtown Lynchburg, Va. (AP/Steve Helber)

When it comes to regulating railroads, states usually let the federal government determine policy. But mounting concerns about the safety of oil trains are making states bolder. In recent months, Oregon, Pennsylvania and Washington state have taken steps to strengthen oversight of the freight rail industry.

The three join several other states — mostly led by Democrats — in policing oil shipments through inspection, regulation and even lawsuits. Washington, for example, applied a 4-cent-per-barrel tax on oil moved by trains to help pay for clean-ups of potential spills. The new law also requires freight rail companies to notify local emergency personnel when oil trains would pass through their communities.

“This means that at a time when the number of oil trains running through Washington is skyrocketing, oil companies will be held accountable for playing a part in preventing and responding to spills,” said Democratic Gov. Jay Inslee when signing the measure this spring.

The flurry of state activity comes in response to a huge surge in the amount of oil transported by rail in the last few years. Oil from the Bakken oil fields in North Dakota and nearby states must travel by train to refineries and ports because there are few pipelines or refineries on the Great Plains. The type of oil found in North Dakota is more volatile — that is, more likely to catch on fire — than most varieties of crude.

Public concerns about the safety of trains carrying oil have increased with the derailments in places like Galena, Ill.; Mt. Carbon, W. Va.; Aliceville, Ala.; Lynchburg, Va.; Casselton, N.D.; and especially Lac-Megantic, Quebec, where 47 people died in 2013.

Federal regulators responded to these incidents by requiring railroads to upgrade their oil train cars, to double check safety equipment on unattended trains, and to tell states when and where oil trains would be passing through their borders. This last requirement was hard won. This summer, the Federal Railroad Administration tried to encourage states to sign nondisclosure agreements with railroads about the location of oil trains. After several states balked, the agency relented.

California, Louisiana, New Jersey, Ohio and Oklahoma have all signed nondisclosure agreements, while Idaho, Illinois, Montana, North Dakota, Washington and Wisconsin have refused to do so, according to the Reporters Committee for Freedom of the Press.

A Maryland judge earlier this month ruled against two rail carriers, Norfolk Southern and CSX, that wanted to block the state’s environmental agency from releasing details of their oil shipments. The railroads have until early next month to decide whether to appeal.

“The ruling isn’t the first time railroads have lost their bid to keep the oil train reports secret,” wrote reporter Curtis Tate of McClatchy, one of the news organizations that requested the records, “but it is the first court decision recognizing the public’s right to see them.”

Many states want this information so that fire departments and other emergency personnel can prepare for a potential derailment. California passed a law last year imposing clean-up fees on oil shipped by rail. The railroad industry challenged the law in court, but a judge ruled this summer that the lawsuit was premature. Minnesota passed a similar law last year, and New York added rail inspectors to cope with the increase in oil train traffic. A 1990 federal law lets states pass their own rules to prepare for oil spills, as long as those rules are at least as rigorous as federal regulations.

In Pennsylvania, which handles 60 to 70 oil trains a week, Democratic Gov. Tom Wolf asked a University of Delaware expert to help to improve safety of oil trains traveling through the state. The professor, Allan Zarembski, produced 27 recommendations for the state and the railroads. He called on the state to improve its inspection processes of railroad tracks, particularly for tracks leading into rail yards, side tracks and refineries that often handle oil trains. The professor also encouraged the state to coordinate emergency response work with the railroads and local communities.

Zarembski’s suggestions for the railroads focused on how they should test for faulty tracks, wheel bearings and axles. Most major derailments in recent years were caused by faulty track or broken equipment, not human error, he noted in his report.

Bakken Crude, Benicia Planning Commission, Climate Change, CPC-1232, Crude By Rail, Derailment, DOT-111, Explosion, Federal Regulation (U.S.), Fire, Global warming, Tar sands crude, Valero Crude By Rail, Volatility

Roger Straw: Crude by rail is dangerous — and dirty!

Repost from the Benicia Herald

Crude by rail is dangerous — and dirty!

By Roger Straw, August 2, 2015
Roger Straw

BACK IN JUNE OF 2013, I was alarmed to discover that Valero had plans to make me and all of Benicia complicit in the massive destruction taking place in the pristine forests of Alberta, Canada. With city Planning Commission approval, Valero planned to purchase crude oil taken from strip mines in Canada that are the dirtiest producers of oil on earth, then ship it on dangerous trains all across the West to our back yard.

Since then, Benicians have learned much more about Valero’s proposal. We’ve learned that Valero would also like to ship volatile Bakken crude oil, taken from fracking facilities in North Dakota and the Upper Midwest, on these trains. Bakken oil has proven different from most other crude, based on the eight accidents since July 2013 involving derailed trains that carried Bakken oil and resulted in massive fires and explosions. Several explosive train derailments have also been loaded with diluted tar sands crude.

Benicians have also learned much more about the trains themselves. Now we know how weak the train cars are, and how the federal government has established new rules that give industry years to strengthen them. Old DOT-111 tank cars still roll down our tracks. Updated — but still highly inadequate — DOT-1232 cars continue to roll, and retrofits of the older cars are to be spread out over the next decade. The railroads circumvent reporting requirements on their shipments to our state and county emergency responders by assembling trains that carry less than a million gallons of crude oil. And even when everything else goes right, aging railroad ties and rails will break, bridges will fail, and there aren’t enough inspectors. The accidents will continue.

Americans are sick of seeing the huge balls of fire on TV. We pray that the next BIG ONE will not be in a highly populated area — but we can’t reasonably pray there will be no next BIG ONE. It’s a matter of when, not if.

Finally, even if all the public safety issues could be solved, Valero’s proposal does far more harm to the environment than the company would have us think. Beginning at the source, production of these North American “extreme crudes” is beyond ugly: oil companies strip and gouge and pollute the soil, destroy wildlife habitat and contribute to soaring cancer rates in human communities. They foul the social fabric of small towns and farming communities with a disruptive boom-and-bust economy. Then come the trains, polluting the air from the upper Midwest all the way to Benicia, clattering over mountains and through gorgeous river passes and right through the hearts of our cities and towns, rattling and clattering near our schools, retirement villages, commercial and industrial centers and homes. In all this (if we give our permission), at every step along the way, the oil and rail industries contribute mightily to the warming of planet Earth.

Valero would like us to think that crude oil trains will save on air pollution by cutting back on the number of marine oil tankers. This may hold for a small region like the San Francisco Bay Area, but the city of Benicia’s own study showed that there would be “significant and unavoidable” impacts to air quality outside the Bay Area. Experts add that there would be “toxic plumes” all along the rail lines: “This thing called ‘crude shrinkage’ happens during transport, where entrained gases escape, leading to a 0.5- to 3-percent loss of crude oil. It’s a big problem for volatile crude oils like Bakken, and coupled with the high benzene levels found in some North American crudes (up to 7 percent) …we estimate over 100 pounds per day of excess benzene emissions from the Valero proposal in the Bay Area (or 1800 times more than the draft EIR reports),” said NRDC Senior Scientist Diane Bailey. Read her blog here: http://switchboard.nrdc.org/blogs/dbailey/valeros_promise_to_benicia_wel.html.

In short, oil trains are dangerous AND dirty.

The city of Benicia will release a revised draft environmental impact report on Valero’s proposal at the end of August. Everyone should stay tuned. Be prepared to study the document, read critical reviews, and share a comment with our Planning Commission. Together, we can make a difference.