Refineries Plan To Ship Even Dirtier Tar Sands Oil Into Bay Area, Fracked Crude By Rail Gets Too Pricey
Reporter Chrystin Ayers, April 27, 2015 11:53 PM
SAN FRANCISCO (CBS SF) — It’s an unexpected consequence of the drop in oil prices. Trains carrying explosive fracked crude oil from North Dakota are no longer rolling through our neighborhoods. Crude by rail has become too expensive.
Instead local refineries are turning to a cheaper alternative, that poses a new kind of danger.
Sejal Choksi-Chugh with San Francisco Baykeeper can’t forget the day the tanker ship Cosco Busan crashed into a Bay Bridge tower, spewing 53,000 gallons of bunker fuel into the bay. “It was getting on boats it was getting on birds it was everywhere,” she said.
But the environmentalist says that’s nothing compared to what could happen if there’s a spill of a new kind of cargo headed our way, called tar sands crude, the dirtiest crude on the planet. “We are looking at a product that sinks. Its very heavy,” she said.
There is huge supply of tar sands crude in Alberta Canada, and it’s cheap. Since they can’t get North Dakota Bakken crude by rail, refineries here in the Bay Area are gearing up to bring the Alberta crude in by ship.
“Today’s refineries are all designed to take ships in,” said energy consultant David Hackett. He says two thirds of the crude supplying Bay Area refineries already comes in on tankers, so adding tar sands to the mix makes sense.
“The California refineries are designed to process crude that is heavy and dense, and relatively high in sulfur. So the Canadian tar sands is the kind of quality that will fit in to the California refineries fairly well,” Hackett said.
The plan is to expand an existing pipeline called Transmountain, that runs from Alberta to Vancouver, and retrofit a terminal in Vancouver that will transfer the tar sands from pipeline to ship. Then tankers could move it down the coast to refineries in the bay.
Projected route of crude oil from Alberta tar sands to the Bay Area. (CBS)
Hackett predicts tankers full of tar sands crude could be coming into the San Francisco Bay in large numbers by 2018, a delivery route he believes is much safer than trains. “There are significant safety standards and operating practices that are involved,” he said.
But with all the extra ship traffic accidents are more likely to happen. Ande even one even one in the bay could be devastating. A spill on the Kalamazoo river in Michigan 5 years ago cost $1 billion to mop up, the costliest cleanup in U.S. history. That’s because tar sands crude is so dense, it sinks.
“It’s going to instantaneously cover the bottom of the bay which will almost automatically kill everything that is on the bay floor,” said Sejal. “We shouldn’t even be contemplating having those vessels come in to the bay until we are ready to deal with a spill,” she said.
Environmentalists in Canada are mounting strong opposition to the expansion of the Transmountain pipeline, but Hackett says since there’s already an existing route, the project will likely get the green light.
And by the way – most of the tar sands that will be headed down the Pacific coast will actually be exported to Asia.
Derailed oil train’s crew told investigators they had seconds to escape
By Curtis Tate, McClatchy Washington Bureau, April 27, 2015
The engineer and conductor on a BNSF oil train that derailed in North Dakota in December 2013 had seconds to escape their locomotive before it was engulfed by fire, according to interview transcripts made available Monday by federal accident investigators.
The interviews, conducted in January 2014 by the National Transportation Safety Board, show the occupational risks railroad workers face, especially with trains carrying hazardous materials. The train’s engineer is suing BNSF, and says the wreck left him with post-traumatic stress disorder.
They also show that emergency responders did not initially understand the severity of the situation they faced when two trains derailed near Casselton, N.D., on Dec. 30, 2013. One of them was carrying grain, and the other, crude oil from North Dakota’s Bakken region.
The train’s engineer, Bryan Thompson, told investigators that he had only seconds to react before the oil train, traveling 43 mph, hit a derailed grain car in its path.
He activated the emergency braking system, but he knew from nine years of experience that virtually nothing could stop the 13,335 tons of train behind him from going off the track. He told his conductor to hit the floor and brace for impact.
“I knew what was coming,” he told investigators, “and I honestly said a prayer. It was really quick.”
Thompson and the conductor, Pete Riepl, were not injured when the locomotive came to rest. But almost immediately, they noticed that the train was on fire, and they needed to get away. They couldn’t exit through the front of the locomotive: The impact with the overturned grain car had jammed the door.
Their only choice was to exit through the back of the locomotive, which forced them to go toward the rapidly encroaching fire.
“That’s the last place you want to go,” Thompson said, “ but it was our only escape.”
Riepl told investigators that the pair got about 200 yards away before they looked back and saw that their locomotive was engulfed in flames.
He also said that several minutes after the derailment, tank cars began exploding, in succession, one about every 10 minutes.
Thompson left his belongings in the locomotive cab, save for his coat _ it was about 20 degrees below zero that day _ and cellphone. He called 911. The dispatcher asked him if she needed to call the local fire department.
“I said, ‘you need to call every fire department,’” Thompson said he told the dispatcher.
The 911 dispatcher instructed Thompson to report to the incident command center established at a local high school. Once there, Thompson said he could hear over radio chatter that people were watching the train burn. In similar situations, authorities usually recommend a half-mile evacuation radius.
“I don’t think you understand what’s going on here,” he said he told a deputy sheriff. “You need to get those people away from there.”
Thompson asked the deputy if he knew about the deadly oil train derailment in Lac-Megantic, Quebec, which killed 47 people in July 2013. He told the deputy that his train was carrying the same kind of cargo: Bakken crude.
“And his eyes got big, you know,” Thompson said, “then he said ‘Code Red’ on his radio.”
For anyone expecting the soon to be released oil-by-rail regulations to make any meaningful improvements to safety, it would be wise to review the full comments made by Rep. Speier.
It has been more than four years since a gas pipeline exploded in Speier’s district in San Bruno, California resulting in eight deaths, huge fires and destruction of a neighborhood. In her testimony she recounted how the state regulators were clearly in league with industry prior to this accident. And in the time since she has come to find that federal regulators, the Pipeline and Hazardous Materials Safety Administration (PHMSA), “does not have the teeth—or the will—to enforce pipeline safety in this country.”
PHMSA is the agency also in charge of the new oil-by-rail regulations as it is a division of the Federal Railroad Administration (FRA). One thing is certain — the new regulations won’t address the volatility of Bakken oil. The White House has already decided that the regulations will not deal with this issue and instead they left it up to North Dakota to deal with it.
North Dakota passed regulations that went into effect April 1 that require the oil to be “conditioned” prior to shipment by rail to address the volatility. However, as has been documented on DeSmogBlog before, conditioning doesn’t remove the volatile and explosive natural gas liquids from the oil. That requires a process known as stabilization.
So with no rules in place to require the oil to be stabilized, future train accidents involving Bakken oil will very likely be similar to the seven that have occurred since July 2013. Huge fires, exploding tank cars and the now all too familiar Bakken mushroom cloud of flame.
There have been seven accidents and it has been the same in all of them. But the White House has decided that the regulations don’t need to address this issue.
It is interesting that the DOE is commissioning reports on this topic since the department has no regulatory oversight of oil-by-rail. The report received little attention upon its release, although it was immediately touted by the American Petroleum Institute (API) as proving that the characteristics of crude oil had nothing to do with the fires occurring in the Bakken train accidents.
The API press release stated, “The Department of Energy found no data showing correlation between crude oil properties and the likelihood or severity of a fire caused by a derailment.”
During the recent hearing, this new DOE report was cited twice by two separate members of Congress. They both used the report to question a statement recently made by Federal Railroad Administration acting administrator Sarah Feinberg regarding the need for the oil companies to reduce the vapor pressure and volatility of oil for rail transport. Reducing the vapor pressure and volatility would require stabilization.
Early in the hearing, Rep. Lou Barletta (D-PA) read a question that contained the exact same description of the report’s conclusion as the API press release.
“You [Feinberg] have recently called on the energy industry to quote ‘do more to control the volatility of its cargo.’ You may have seen a recent report from the Department of Energy where the agency found no data showing correlation between crude oil properties and the likelihood or severity of a fire caused by a derailment.”
Later in the hearing, Rep. Brian Babin (R-TX) read the exact same statement. It appeared even Feinberg was a bit surprised at being asked the exact same question by two different congressmen as she responded, “I’m happy to take that question again.”
So, while the API wasn’t at this hearing, they had two members of Congress directly reading prepared questions that echoed their press release on the DOE report word for word.
Watch video of the two identical questions asked at the hearing:
The first important thing to note about the “no data” talking point is that it is true. The report did not find data on this because that isn’t what the report was designed to do. The report reviewed three field sampling studies on the characteristics of Bakken crude oil. None of these studies looked at “correlation between crude oil properties and the likelihood or severity of a fire caused by a derailment.”
It is easy to say you found “no data” when you know there is none in your source material to begin with.
Perhaps the most insidious part of this is that no one at the hearing called them on their blatant mischaracterization of the report and their ignorance of the science of Bakken oil and volatility.
In a recent article about the volatility of oil in Al Jazeera, an actual petroleum engineer clearly stated what is widely known in the oil and rail industries but is “debated” by the API and congress and regulators to avoid having to regulate the Bakken crude.
“The notion that this requires significant research and development is a bunch of BS,” said Ramanan Krishnamoorti, a professor of petroleum engineering at the University of Houston. “The science behind this has been revealed over 80 years ago, and developing a simple spreadsheet to calculate risk based on composition and vapor pressure is trivial. This can be done today.”
A bunch of BS. The oil industry, DOE, FRA and PHMSA want us to believe that the properties of oil aren’t currently understood. And as outrageous as that assertion is, multiple hearings and reports have been conducted on the matter. And many more will occur before anything is done.
The DOE report outlines all of the further research the department will be doing on this issue over the next couple of years.
And as previously reported on DeSmogBlog, the exact same thing is happening with tar sands oil and dilbit. Hearings, studies, reports. With many of the studies and reports being directly funded by the American Petroleum Institute and its members. All dragging on years after major incidents like the Kalamazoo River dilbit spill.
In her testimony, Rep. Speier didn’t hold back on her feelings about the failures of the regulatory system.
PHMSA is not only a toothless tiger, but one that has overdosed on Quaaludes and is passed out on the job.
But the reality is that PHMSA is just a small piece of the much larger puzzle that includes the Department of Energy, the White House, the Federal Railroad Administration and first and foremost, the American Petroleum Institute and their supporters at all levels.
A couple of days after the hearing, FRA acting administrator Sarah Feinberg appeared on Rachel Maddow’s show to discuss this problem and said the following regarding stabilization of oil.
“The science is still out. The verdict is still out on what the best way is to treat this product before placing it into transport.”
Watch FRA acting administrator Sarah Feinberg in this Maddow clip:
But the science isn’t still out. Even in the DOE report, it clearly states that the oil needs to be stabilized to reduce the vapor pressure and that conditioning the oil, as they currently require in North Dakota, does not accomplish this.
To add to the absurdity of this situation, Feinberg admitted to Maddow that the oil industry stabilizes the oil before it is transported in pipelines or on ships. Apparently the science is crystal clear in those cases.
So while Feinberg got beat up at the hearing by congressmen and their API talking points, there was Feinberg on Maddow’s show spouting other API talking points.
Rep. Speier is probably wrong. The system isn’t fundamentally broken. This would be true if the system was designed to keep the public safe, but it isn’t. The system is designed to keep corporate profits safe so the reality is that the system is working as designed. And the bomb trains continue to roll.
By Roger Straw, Editor, The Benicia Independent, April 22, 2015
This Sierra Club before-and-after photo of tar sands strip mining appeared with my 6/14/13 opinion in the Benicia Herald, “Do Benicians want tar-sands oil brought here?” – Roger Straw
My initial alarm over Valero’s proposal to build a crude-by-rail offloading facility here in my hometown came almost two years ago now, when I learned of the destruction in Alberta Canada caused by the mining and processing of tar sands. It was plain to me that a decision to permit Valero Crude By Rail here, thousands of miles from those dirty bitumen mines, would position my hometown as a valued partner in the world’s most toxic oil extraction and transport operation. I joined with others here in Benicia to organize so that we would have no part in that dirty game.
Lac-Mégantic, Quebec
For me and for many along the rails in the U.S., our focus shifted gradually – or in some cases suddenly – to public safety issues surrounding Bakken shale oil train derailments and the resultant catastrophic explosions and fireballs.
Lately, I’m thinking that even thoughthese safety concerns will not go away with the eventual passage of a few new laws and long-delayed safety regulations, we all might want to consider renewing and strengthening our original focus.
What we decide here along the tracks and in refinery towns has EVERYTHING to do with the situation in Alberta and the Upper Midwest where tar sands bitumen and shale oil is being produced. People there, the land there, the wildlife, the air and water … these are the first and lasting victims of our thirst for cheap oil.
We hear so much about the oil boom’s contribution to “energy independence.” Well, let’s focus on REAL energy independence: leave the oil in the ground, tax carbon, invest in clean energy.
The Benicia Independent has always been concerned with climate change, the air we breathe and the water and land that sustains life. But our focus, like that of much of the media, has been primarily on the oil train derailments that have understandably shocked and frightened the public since July, 2013. As editor and publisher, I’m serving notice this Earth Day, that the Benicia Independent is taking on a renewed commitment to cover the ongoing environmental damage and the increased risks of pollution if we permit oil trains.
You will begin to see more stories about proposed carbon taxes, polar ice, the destruction of land and lives in Alberta and the Upper Midwest and more.
Note that I fully expect my work to be dominated from time to time by the NEXT BIG EXPLOSION, and the NEXT ONE…. As long as oil trains rumble through our neighborhoods, city centers, mountains and wetlands and into our refinery industrial centers, we WILL see derailments. And no matter the new federal safety rules and the efforts of the rail and oil industries, NOTHING can prevent the massive weight of a moving chain of these monstrous tank cars from coming off the tracks occasionally, accordion jackknifing, flipping and puncturing, setting off horrific explosions, and endangering human life and our natural world. It will happen, and I will cover the news.
But for every day that you DON’T see a news report with fiery skies and black billowing smoke, please understand that the not-so-silent killer strip-mines and the fracking and horizontal drilling continue, too often unreported. Far from most of us, but up close and real to the people who live there, our earth is groaning under the weight of our permitting decisions and our corporate desire for continued crude-oil profitability.
Here in Benicia, we will say NO to crude by rail. It’s a tangible way to have a small say in the welfare of our town, our state, our nation and our beautiful planet earth.
Leave the oil in the ground. Tax carbon. Invest in clean energy.
Understanding the North American Tar Sands Jan 14, 2015 … Last year, Portland’s KBOO Community Radio profiled what is “the largest industrial project on Earth”: the North American tar sands. Typically, one hears of the “Canadian tar sands,” as if the issue is one that lives only north of the US national border and need not concern American citizens. But reporter Barbara Bernstein’s documentary, “Fighting Goliath,” revealed an alarming and very real threat…
Tar Sands
Tar sands are found underneath Canada’s great boreal forest and consist of heavy crude oil trapped in a mixture of sand and clay. To extract oil from tar sands, companies must destroy fragile forest ecosystems and then use a very energy-intensive upgrading and refining process to turn that sludge into transportation fuel….
Canada’s tar sands is one of the largest industrial projects on the planet, and its environmental footprint is growing by the second. At a time when the world needs to transition to cleaner energy, the tar sands is the poster child of what we should not be doing. It’s time to put a healthy environment above corporate profit and the endless drive for more oil….
ostseis.anl.gov/guide/tarsands/
Argonne National Laboratory Tar sands (also referred to as oil sands) are a combination of clay, sand, water, and bitumen, a heavy black viscous oil. Tar sands can
be mined and processed to extract the oil-rich bitumen, which is then refined into oil.
en.wikipedia.org/wiki/Oil_sands Oil sand is either loose sand or partially consolidated sandstone
containing a naturally occurring mixture of sand, clay, and water,
saturated with a dense and extremely viscous form of petroleum
technically referred to as bitumen (or colloquially tar due to its
similar appearance, odour, and colour).
Extracting tar sands, and turning bitumen into crude oil, uses vast amounts of energy and water, and causes significant air and water pollution, and three times …
www.ran.org/what-are-tar–sands Rainforest Action Network The Keystone XL pipeline is a disastrous project of tar sands oil
companies that will do serious damage to our country and
climate. If built, the spill prone …
www.economist.com/…/21615488-new-technologies-are-…
The Economist Sep 6, 2014 – ONE of the bleakest scenes of man-made
destruction is the strip mining of oil sands in the forests of
Alberta, Canada. The sand is permeated …
Tar sands are found underneath Canada’s great boreal forest and consist of heavy crude oil trapped in a mixture of sand and clay. To extract oil from tar sands, …
But golf courses and suburban housing make the place liveable, and some locals have grown attached to Alberta’s tar sands and Fort McMurray, the town at the centre of them. “I’d like …
www.newyorker.com/magazine/…/unconventional-crud… – The New Yorker
The tar sands begin near the border of Saskatchewan, around the latitude of Edmonton, and extend, in three major deposits, north and west almost to British Columbia. All in all, they …
www.scientificamerican.com/…/tar–sands-and-keyston… – Scientific American
The Opposite of Mining: Tar Sands Steam Extraction Lessens Footprint, but Environmental Costs Remain · Oil Sands Raise Levels of Cancer-Causing Compounds in Regional Waters.
Oil sands are a mixture of sand, water, clay and bitumen. They are found in several locations around the globe including Venezuela, USA, Russia and Canada.
Canada’s tar sands are the biggest energy project in the world,
currently producing 1.9 million barrels of oil a day. Largely located
in Alberta, the tar sands …
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