Download from Platts.com McGraw Hill Financial [Editor: Platts.com is an excellent source of energy industry insider information. Their 4-page May, 2014 report, “Bakken: The King in the North,” has technical data on Bakken background, industry trends and market predictions. I have excerpted a few sample quotes below. – RS]
Bakken: The King in the North
Bakken crude oil represents light sweet crude produced from the Bakken Shale Formation in the North Dakota / Montana / Saskatchewan / Manitoba region. Production from the US side of the Williston Basin, the sedimentary basin that contains the productive Bakken Shale Formation, crossed the 900,000 b/d mark in November 2013 and was more than 888,000 b/d in February, according to the North Dakota Pipeline Authority and estimates from Bentek, a unit of Platts.
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Pipeline capacity out of the Bakken is set to increase from 600,000 b/d currently to over 1 million b/d by early 2016….
Repost from The Roanoke Times [Editor: Slow, deliberate … and of course, COSTLY. – RS]
NTSB says train cars being analyzed in Lynchburg derailment investigation
June 3, 2014 | by Alicia Petska, Lynchburg News & Advance
Federal officials continue to sift through a mountain of information in the Lynchburg train derailment, lead investigator Jim Southworth said.
Southworth, of the National Transportation Safety Board, was among some 80 federal, state and local officials who attended a rail safety roundtable organized Monday by U.S. Sen. Mark Warner.
Southworth was not one of the speakers, but in an interview afterward he said the investigation into what caused the April 30 train derailment in Lynchburg is continuing at a slow and deliberate pace.
Southworth said officials will review CSX’s maintenance and inspections records going back months.
In addition, the team will do a 3-D scan, inside and out, of the oil tanker that ruptured and send pieces of it off to a lab for metallurgical testing.
Other tankers in the 105-unit train that derailed will be scanned as well to compare their performance to the ruptured unit.
Southworth said it is too early to comment on what may have caused the derailment that upset 17 oil tanker cars, three of which fell into the James River.
He said Monday he hoped to complete the investigation in a year or less.
“There is a lot of interest in what happened here because of the type of tanker cars,” he noted. “It’s going to be scrutinized quite deliberately.”
The train that derailed in downtown Lynchburg contained a mix of older and newer model oil tankers, but the car that ruptured was a newer model intended to be safer in the event of an crash.
The derailment, which sparked a large fire on the river but caused no injuries, has made Lynchburg part of a national debate on the best way to ship crude oil in the country.
So far, there has been no evidence the derailment was caused by operator error, Southworth said. He declined to comment on other possibilities and said the investigation still is in the fact-gathering stage.
Investigators no longer are working on-site at the derailment scene, but continue to gather information and analyze the train cars and pieces of the damaged track.
Rail transport of oil poses risk to Lake Champlain
By Lake Champlain Committee Staff Scientist Mike Winslow | April, 2014
The sound of trains clacking along the rails that abut Lake Champlain has become more common recently with the dramatic increase in freight traffic attributed to fossil fuel extraction. Each week approximately 60 million gallons of oil travel along the lake carried by 20 trains with up to 100 cars each. The U.S. now meets 66 percent of its crude oil demand from production in North America with tremendous growth in outputs from Canada and the Bakken oil fields of North Dakota. In October 2013 U.S. crude oil production exceeded imports for the first time since February 1995.
Oil produced from the Bakken fields is very light. That means it flows easily, but it also means it is more volatile and flammable. As a result, the potential property damage and loss of life associated with rail accidents involving Bakken oil is higher than oil from other sources. In January of this year two federal agencies issued a safety alert warning of these risks.
The alert was triggered by a series of devastating accidents. The Federal Railroad Administration statistics suggest that on average at least one car slips off the tracks every day. There have been six major derailments between the beginning of 2013 and mid-January 2014. The most infamous occurred on July 5, 2013, in Lac Megantic, Quebec. An improperly secured train began rolling on its own, and 63 cars derailed near the center of town. Derailment led to multiple explosions and fires, evacuation of 2,000 people, and 47 fatalities. On Oct. 19, 2013, 13 tank cars derailed in Alberta leading to evacuation of 100 residents. Three cars carrying propane burned following an explosion. On Nov. 8, 2013, 30 cars derailed in a wetland near Aliceville, Ala., and about a dozen were decimated by fire. On Dec. 30, 2013, two trains, one carrying grain and one oil, collided in Casselton, N.D. Twenty of the oil train cars derailed and exploded leading to evacuation of 1,400 people. On Jan. 7, 2014, 17 cars derailed in New Brunswick and five exploded leading to evacuation of 45 people. On Jan. 20, 2014, seven cars derailed on a bridge over the Schuylkill River in Philadelphia, though no oil leaked. More recently, 15-17 cars derailed in Lynchburg, Va., on April 30. Three fell into the James River and one burst into flames. There were no injuries but 300-350 people had to be evacuated and oil leaked into the James River. The state estimated 20,000 to 25,000 gallons escaped during the wreck.
Our region is no stranger to train derailments. In 2007, a northbound Vermont Railways freight train derailed in Middlebury spilling gasoline into Otter Creek and leading to the evacuation of 30 streets in the vicinity. Trains have also derailed along the Lake Champlain route. In 2007, 12 cars derailed near Route 22 in Essex, N.Y., the same stretch of tracks now carrying volatile oil.
Concern over the state of North American freight rail safety predates the increase in oil shipments. In 2006 the Toronto Star ran a five-part series on rail safety. They noted “Canadian freight trains are running off the rails in near record numbers and spilling toxic fluids at an alarming rate, but only a tiny fraction of the accidents are ever investigated.”
In contrast to Bakken field oil, tar sands oil is very heavy. Cleanup of tar sands oil following accidents is extremely difficult. The oil sinks rather than floating, making containment very difficult.
The greatly increased traffic in oil has further strained railroad infrastructure. According to an article in Pacific Standard Magazine, 85 percent of the 92,000 tank cars that haul flammable liquids around the nation are standard issue DOT-111s. They have been referred to as “Pepsi cans on wheels.” These cars are built to carry liquids, but lack specialized safety features found in pressurized tanks used for hauling explosive liquids. The industry has agreed to include additional safety features in any new cars put on the tracks, but since rail cars have an economic life of 30 to 40 years, conversion to the newer cars has been slow.
One relatively new risk is the predominance of “unit trains.” These are long series of cars all shipped from the same originating point to the same destination. Often the cars will all carry the same product. It used to be that oil cars were mixed in with other freight cars bound for different locations. Unit trains are a greater risk in part because safety standards are based on the carrying capacity of a single car and don’t account for the greater volumes that unit trains can transport. The National Transportation Safety Board, an independent federal agency charged with investigating accidents, has called on the Federal Railroad Administration to change this standard.
Recently, an oil company submitted plans to build an oil heating facility in Albany, N.Y. The facility would be used to heat oil shipped via rail. The oil would then be transferred to barges and floated to refineries. If permitted, a heating facility would draw increased transport of Canadian tar sands, which needs to be diluted or heated for loading or unloading, through the Lake Champlain region. In contrast to Bakken field oil, tar sands oil is very heavy. Cleanup of tar sands oil following accidents is extremely difficult. The oil sinks rather than floating, making containment very difficult. When a pipeline carrying tar sands oil broke near Kalamazoo, Mich., 850,000 gallons spilled. The resulting cleanup cost over $1 billion and costs were “substantially higher than the average cost of cleaning up a similar amount of conventional oil,” according to a report prepared by the Congressional Research Service.
In November of 2013, the New York Department of Environmental Conservation (DEC) declared the proposed facility would have no significant environmental impacts. However, public outrage led them to reconsider that declaration, expand the public comment period, and seek additional information from the proponents. Still, the additional requested information only touches the tip of the facility’s impacts on the region. The facility should undergo a full environmental impact review that includes potential impacts on freight shipping throughout the region including along Lake Champlain.
The increased risk associated with more oil transport along Lake Champlain and in the region seemed to catch regulators by surprise, but they are reacting now. On Jan. 28, N.Y. Gov. Andrew Cuomo issued an executive order directing several state agencies to do a top-to-bottom review of safety procedures and emergency response preparedness related to rail shipments of oil. On Feb. 26, Sen. Schumer called for the phase-out of all DOT-111 rail cars and reduction in rail speed limits in heavily populated areas. On March 4, Cuomo sent a letter to the secretaries of the departments of Homeland Security and Transportation urging them to expedite and strengthen rail safety standards, require reporting by railroad companies of derailments, increase inspections and identify and track rail cars carrying crude oil. On April 10, the DEC issued a joint press release with EPA and the Coast Guard committing the agencies to enhance emergency preparedness and response capabilities for potential crude oil incidents. On April 30, Gov. Cuomo wrote a letter calling on President Barack Obama to prioritize federal actions to reduce risks of future train derailments.
Delays by the Federal Railroad Administration in updating standards to reflect the greatly increased traffic of potentially explosive Bakken crude oil all around the country puts people, communities, Lake Champlain and other waterways at risk. The administration needs to act before another disaster like what occurred in Lac Megantic occurs here or elsewhere. Train whistles echoing off the lake should elicit wistful thoughts of faraway places, not shudders of dread.
Lake Look is a monthly natural history column produced by the Lake Champlain Committee (LCC). Formed in 1963, LCC is the only bi-state organization solely dedicated to protecting Lake Champlain’s health and accessibility. LCC uses science-based advocacy, education, and collaborative action to protect and restore water quality, safeguard natural habitats, foster stewardship and ensure recreational access.
Repost from WTVR CBS6, Richmond, Virginia [Editor: excellent video, including potential blast zone map – apologies for the ad that precedes the TV news report. – RS]
Officials discuss rerouting trains around Richmond that transport volatile oil
June 2, 2014, by Melissa Hipolit, Updated June 3, 2014
RICHMOND, Va. — Fire officials in Central Virginia said the probability of a large train derailment in the City of Richmond involving a train carrying a volatile type of oil is very low, but if one did happen, they would not have the capability to respond alone.
Deputy Fire Marshall and Hazmat Coordinator Captain Darl Jewell with the Richmond Fire Department and Assistant Fire Chief Rick Edinger with the Chesterfield Fire Department both said trains have derailed in the area over the years, but nothing like the recent disasters in Lynchburg and Quebec.
“Minor derailments happen more often than you think, but they’re often never reported,” Jewell said.
Jewell said between four and six trains a week pass through Richmond carrying a particularly combustible form of oil.
“It literally burned the downtown area down before they could get the fire under control,” Edinger said about the derailment in Quebec.
If some of those train cars were to fall of the tracks in Richmond, Edinger and Jewell said the results could be devastating.
“It would be like a large plane crash,” Edinger said.
Edinger said most localities are prepared to respond to an accident involving a truck carrying 9,000 gallons of oil.
Compare that to the amount of oil carried in a single car on one of those oil trains, which can reach 30,000 gallons, and those trains, can have up to 100 cars.
Edinger said that means a single train could have more than a million gallons of oil on board.
CBS 6 asked Edinger if departments are prepared to handle a worst case scenario, something even like the Lynchburg derailement.
“There aren’t many departments, if any, that have the capability to immediately respond to that,” Edinger said.
Edinger said that volume is why local fire departments need more resources and training.
“We need some more comprehensive training, and we’ve had those discussions with the railroads,” Edinger said.
Fire officials define the “worst case scenario” for this situation would involve 33 train cars derailing in Shockoe Bottom.
If that were to happen during peak business hours, the impact could stretch to a half mile radius encompassing hundreds of thousands of people.
Edinger and Jewell said they are in talks with the railroad company and government officials about possibly rerouting the trains that carry the volatile oil around Richmond.
Jewell said the railroad company inspects the tracks twice a week to prevent derailment.
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