Tag Archives: Crude by Rail

Video: Stop Oil Trains in California

Repost from email by Ethan Buckner, Forest Ethics

For the past few years, momentum is building all along communities throughout California concerned about the growing threat of oil trains. ForestEthics, in partnership with filmmaker Bunker Seyfert, is excited to share this new short piece highlighting the campaign to stop the proposed Phillips 66 oil train terminal in San Luis Obispo County.
Please watch and share!  – Ethan Buckner, US Organizer, ForestEthics

Stop #OilTrains in California

California could be the site of the next oil train disaster, unless we take action now at ProtectSLO.org.

Multinational oil company Phillips 66 is proposing to expand its San Luis Obispo County refinery to receive oil trains carrying explosive, toxic, and carbon-intensive tar sands oil. If approved, more of these oil trains will begin rolling through California’s communities, threatening schools, homes, community centers, and parks. Over 5 million California residents live in the oil train blast zone.

The San Luis Obispo County Planning Commission and Board of Supervisors will make the final decision on this project, and they need to hear from us – residents of SLO County and other impacted California communities. Take action now and tell SLO County decision makers to reject this dangerous project.

Take action now at ProctetSLO.org.

California billionaire fights to keep tar-sands oil out of state

Repost from The San Francisco Chronicle
[Editor:  See the full report, West Coast Tar Sands Invasion.  See Anthony Swift’s NRDC Blog for summary details.  See also the ForestEthics press release.  – RS] 

Billionaire fights to keep tar-sands oil out of state

By David R. Baker, April 29, 2015
Tom Steyer hopes  to block Canada oil from the state. Photo: David Paul Morris, Bloomberg
Tom Steyer hopes to block Canada oil from the state. Photo: David Paul Morris, Bloomberg

Billionaire environmentalist Tom Steyer has a new mission

— keeping oil from Canada’s tar sands out of California.

Steyer’s NextGen Climate organization released a report Tuesday warning that an “invasion” of tankers and railcars carrying crude from the oil sands could soon hit West Coast refineries, which currently process very little Canadian oil.

Steyer, a major Democratic donor who quit his hedge fund to focus on fighting climate change, has risen to prominence as a vocal opponent of the Keystone XL pipeline extension, which would link the oil sands to American refineries on the Gulf Coast.

A train carries crude oil through Kansas City, Mo., in 2014. Environmentalist Tom Steyer’s NextGen Climate organization warns that railcars carrying oil from Canada could soon hit West Coast refineries. Photo: Curtis Tate, McClatchy-Tribune News Service
A train carries crude oil through Kansas City, Mo., in 2014. Environmentalist Tom Steyer’s NextGen Climate organization warns that railcars carrying oil from Canada could soon hit West Coast refineries. Photo: Curtis Tate, McClatchy-Tribune News Service

But Tuesday’s report, prepared with the Natural Resources Defense Council and a coalition of other environmental groups, notes that the oil industry is pursuing other pipeline routes that would carry tar-sands petroleum to Canada’s Pacific Coast. From there, it could be shipped to refineries in California and Washington. In California, companies have proposed five new terminals for receiving oil shipped by rail — another potential means of entry. California’s policies to fight climate change discourage but don’t prevent the use of oil-sands crude.

“Keystone is not the only way the tar sands threaten our country,” Steyer said Tuesday at an event in Oakland, releasing the report. “The owners of the tar sands are always looking for other routes to the world’s oceans and the world’s markets.”

Steyer and other environmentalists have made blocking Keystone a rallying cry in the fight against global warming, since extracting hydrocarbons from the oil sands releases far more carbon dioxide into the atmosphere than other forms of oil production. And unlike common oil, the diluted bitumen (a tar-like substance extracted from the sands) sinks in water, making spills from pipelines and tankers difficult to clean.

“It is shockingly toxic, it is extremely nasty and it takes forever to clean up,” Steyer said. “To end the risk from tar-sands oil once and for all, we need to move beyond oil to a clean energy future. Luckily, this is the kind of leadership California excels at.”

The oil industry, and the Canadian government, call the oil sands a reliable source of oil from a friendly ally. And industry representatives often note that California’s dependence on imported oil has grown in recent years, in large part because production in Alaska — once one of California’s biggest suppliers of crude — has dropped.

Steyer has devoted a sizable chunk of his personal fortune, estimated at $1.6 billion, to backing political candidates who support action on climate change and targeting those who don’t, spending $73 million in the last election cycle. He said Tuesday that he has not yet decided whether to pay for an advertising campaign against bringing oil-sands crude to the West Coast.

“I’m not 100 percent sure,” he said. “Exactly how we fight it, I don’t think we’ve determined.”

Crude from the tar sands makes up a tiny fraction of the oil processed in California refineries — less than 3 percent, according to the report. And while the amount of oil shipped into the the Golden State by rail has soared in recent years, most of that petroleum comes from North Dakota and other states where hydraulic fracturing, or fracking, has produced a glut of crude.

But oil companies have proposed two pipeline projects that would link the oil sands to the Pacific Ocean, both of them traveling through British Columbia. If built, they could lead to an additional 2,000 oil tankers and barges moving up and down the West Coast each year, according to the report. The rail terminal projects proposed in California could raise the amount of oil-sands crude processed in the state each day from the current 50,000 barrels to 650,000 barrels by 2040.

However, that outcome is hardly certain.

A California policy known as the low carbon fuel standard requires oil companies to cut by 10 percent the amount of carbon dioxide associated with each gallon of fuel they sell in the state, reaching that milestone by 2020. In addition, the state’s cap-and-trade system forces refineries to cut their overall greenhouse gas emissions. Neither policy specifically prevents refineries from using oil-sands crude, but both give oil companies a powerful incentive to use other sources of petroleum.

Anthony Swift, one of the report’s authors, said California needs to adopt more stringent emissions targets to keep out crude from the oil sands.

“These policies are a very good start,” said Swift, of the Natural Resources Defense Council. “We need to get more robust targets — for both the low carbon fuel standard and the cap — to signal to the industry that California is not going to be an option for tar-sands refining.”

David R. Baker is a San Francisco Chronicle staff writer.

Energy, Transportation departments to study volatility of oil moved by rail

Repost from McClatchyDC

Energy, Transportation departments to study volatility of oil moved by rail

By Curtis Tate, April 28, 2015
The federal government will conduct a two-year study of how crude oil volatility affects the commodity’s behavior in train derailments, Energy Secretary Ernest Moniz told a Senate panel Tuesday.The Energy Department will coordinate the study with the Department of Transportation, Moniz told the Senate Energy and Natural Resources Committee.

After a series of fiery train derailments, the Transportation Department concluded early last year that light, sweet crude oil from North Dakota’s Bakken region is more volatile than other kinds.

But derailments involving ethanol and other types of crude oil have cast doubt on whether Bakken is likely to react more severely than other flammable liquids transported by rail.

The petroleum industry has been citing its own studies and a recent report from the Energy Department’s Sandia National Laboratory to support its position that there’s no difference. But it’s clear that more crude oil is moving by rail, and an increase in serious accidents has come with that increased volume.

Moniz said the Sandia report was “the most comprehensive literature survey in terms of properties of different oils” but showed the need for more research to determine their relevance in train derailments.

The joint Energy-Transportation study would look at other kinds of crude moving by rail, such as light crude from west Texas and heavy crude from western Canada.

Sen. Maria Cantwell, D-Wash., a member of the Senate Energy panel who requested the departments work together on a study, noted that there had been four derailments of oil trains in the U.S. and Canada since the beginning of the year.

“A number of high-profile incidents have underscored major safety concerns,” she said.

On April 1, North Dakota began setting vapor pressure limits for crude oil loaded in tank cars at no more than 13.7 pounds per square inch.

But the crude oil tested in many serious derailments had a lower vapor pressure than the new standard…..  [MORE]

Refineries Plan To Ship Dirty Tar Sands Oil Into Bay Area; Fracked Crude By Rail Gets Too Pricey

Repost from CBS SF Bay Area

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.