Tag Archives: Exxon

Bakken Crude, Crude By Rail, Derailment, Explosion, Federal Regulation (U.S.), Let it burn, Tank car design, Tank car retrofit

Rail Industry Requests Massive Loophole in Oil-by-Rail Safety To Extend Bomb Trains Well Beyond 2025

Repost from DeSmogBlog

Rail Industry Requests Massive Loophole in Oil-by-Rail Safety To Extend Bomb Trains Well Beyond 2025

By Justin Mikulka, July 21, 2016 – 13:00

In the most recent oil-by-rail accident in Mosier, Oregon the Federal Rail Administration (FRA) concluded that the tank cars involved — the jacketed CPC-1232 type — “performed as expected.” So an oil train derailing at the relatively slow speed of 25 mph should be “expected” to have breached cars resulting in fiery explosions.

Current regulations allow those tank cars to continue rolling on the track carrying volatile Bakken crude oil and ethanol until 2025 with no modifications.

Yet industry lobbying group the Railway Supply Institute (RSI) has now requested the Federal Railroad Administration to essentially allow these jacketed CPC-1232 tank cars to remain on the tracks for decades beyond 2025.

This was just one of the troubling facts that came to light at the National Transportation Safety Board (NTSB) roundtable on tank car safety on July 13th, and perhaps the one of greatest concern to anyone living in an oil train blast zone like Mosier, Oregon.

Just Re-Stencil It and Call It a DOT 117

One of the biggest risks with Bakken oil train accidents is that often the only way to deal with the fires is to let them burn themselves out. This can result in full tank cars becoming engulfed in flames for hours or days in what is known as a pool fire. This can lead to a “thermal tear” in the tank and the signature mushroom cloud of fire so often seen with these derailments.

The new regulations address this issue by requiring tank cars to have a layer of ceramic insulation covering the entire tank car to prevent the oil from heating up to the point of creating a thermal tear (ceramic shown in pink in the image below.)


Image credit: NTSB

However, the RSI has requested the FRA to allow the existing jacketed CPC-1232 cars, like the ones in the Mosier accident, to not require the ceramic thermal protection.

The industry’s argument is that the current fiberglass insulation on the CPC-1232 is sufficient protection. However, the fact that the fiberglass insulation was not designed to protect the contents of a tank car from fire does not seem to bother the RSI.

At the same time the RSI is arguing against thermal protection for CPC-1232s, the RSI has helpful videos on its website explaining the new safety features for DOT-117 tank cars — including “thermal protection.”

The NTSB’s Robert Sumwalt summed up what this request would mean in one simple statement at the July 13 round table event saying, “the same type of cars as in Mosier can be re-stenciled as DOT-117R with nothing more than a new bottom outlet valve.” [R stands for retrofit.]

So, they are essentially asking to paint over the CPC-1232 label on the tank cars with a DOT-117 while doing nothing more than changing the bottom outlet valve. Which means we should expect many more accidents like Mosier in the future since most of these CPC-1232 cars are only a few years old and they have an expected working life of 30-40 years.

As Robert Sumwalt said in his opening statement explaining why we should expect many more fiery oil train derailments with the existing tank car fleet, “just do the math.”

Industry Arguments Laughable If Not For the Consequences

Would you believe that one of the arguments made at the roundtable in favor of not requiring thermal protection on these cars was that the oil itself acts as a heat sink? Which is true. Until the point where the oil absorbs so much heat from the fire that the tank car explodes.

However, the reason this argument is given credibility is that the regulations only require a tank car to endure sitting in a pool fire for 100 minutes without exploding. Forget the fact that many of the Bakken oil train accidents have involved fires that burned for days.

This 100-minute limit was the same reasoning used to justify the fiberglass insulation on the current jacketed CPC-1232 as offering sufficient protection, as per the industry request. Which led to the following exchange between the NTSB’s Sumwalt and RSI representative John Byrne.

Byrne: “In our own modeling the fiberglass insulation system met the federal requirement for thermal protection.”

Sumwalt: “But in reality in the fiberglass situation, doesn’t the fiberglass all just melt… doesn’t it also melt and all end up pooling down in the bottom in the void between the blanket and the shell?”

Byrne: “Basically yes…but at the same time, that whole system acts as a thermal protection system in that it meets the requirement based on the federal law.”

Sumwalt: “Ok, thanks. So it meets the requirements.”

So, along with the oil itself being offered as adequate thermal protection, we also get fiberglass that melts in a fire being offered as protection for anyone in the blast zone.

So what did the regulators have to say about this absurd argument?

FRA’s Karl Alexy made it clear that “industry” concerns were receiving serious consideration saying, “we’re not taking it lightly, we understand what it means to industry… be certain that we are taking this very seriously.”

Well, we do understand what it means to the industry. Adding ceramic thermal protection would cut into profits. And one thing that was made clear repeatedly during the day’s discussion was that this was all about the money and that safety was only for people worried about “risk.”

As usual when there is a discussion about oil train safety, the oil industry lobbying group the American Petroleum Institute had a seat at the table. API representative Susan Lemieux cut to the heart of the issue with some actual honesty.

“In the industry we don’t see transportation as a risk, it is just a function of business.”

Why try to improve the situation when you don’t see any risk?

The FRA and the Pipeline and Hazardous Materials Safety Administration have informed DeSmog that they will issue a formal response to the industry’s request to allow the fiberglass to qualify as thermal protection in the near future.

The Ground Rules – Profits Over Safety

In the above slide shown of the DOT-117, there is one other important thing to note. The shells on those tank cars are 9/16th of an inch thick. The shells of the jacketed CPC-1232 are 7/16th of an inch thick. This difference has safety implications as the thinner shells rupture more easily.  The RSI points out this fact in a video on its website about the advantages of the thicker shells on the DOT-117 which they say are “less prone to puncture.”

But the more important difference, as we have pointed out repeatedly at DeSmog, is that safer car designs are heavier, which means they can transport less oil per car. That lower capacity again cuts into profits. This point was made by ExxonMobil in a slide they presented to regulators arguing against thicker tank shells.

While Exxon was not at the roundtable, plenty of oil and rail industry representatives were, and they made this point very clear.

Gabe Claypool, President of oil train operators Dakota Plains, explained why it made economic sense to use CPC-1232s over DOT-117s.

“A lot of it’s economics as well…we were just having a conversation around the sizing of the car, the 1232 car type is very much in abundance and it is also a larger car. In the current category of still trying to be profitable, if I can get that extra volume in a larger car that is still regulatorally [sic] compliant, they’re [sic] gonna stick with that.”

Richard Kloster of rail consulting firm Alltranstek was one of the more vocal participants during the roundtable and he repeatedly made points about the economics of retrofitting the CPC-1232 over buying the new DOT-117 saying, “The retrofit is always going to win economically.”

Kloster also made it clear where the industry put its priorities when it came to safety versus profit saying, “There has got to be a balance between safety and the economic viability of moving these products by rail” and that there were a “lot of cases, you know, where economics wins all the time but risk trumps economics in some cases.”

Economics wins all the time.

There was one representative from labor at the roundtable who did not offer a comment until the final closing segment, but he also shared the reality of what was driving the decisionmaking when he discussed the need for safety but stated, “I know it’s about money.”

ExxonMobil Wins Again

So, in the end, ExxonMobil and the oil industry have won again. Watching this roundtable and the many congressional hearings and previous NTSB events in the past few years and seeing the lack of progress on real safety improvements, it almost seems like this all was orchestrated from the start.

In the years leading up to the latest tank car rulemaking, the industry essentially ordered a whole new fleet of CPC-1232 cars which they are currently using. The CPC-1232 cars have the thinner tank shells which makes them more prone to puncture and also more profitable. And they are ok to use, unchanged, until 2025. If the industry request is approved, those cars will just need new bottom outlet valves after 2025.

Regardless, they will always have the thinner tank shells, like Exxon wanted.

At the end of the July 13 event, Robert Sumwalt made an interesting statement. He said, “some of us met yesterday to go over the ground rules.”

The meeting where they went over the ground rules was not open to the public or media. If one were to hazard a guess as to what the first and foremost ground rule set was, it would be a safe bet to posit it was that “economics wins all the time.”

Blog Image Credit: Dawn Faught via NTSB

 

Alberta Canada, Carbon pricing systems, Carbon taxes, Climate Change, Coal, Jobs, Keep it in the ground, Oil industry lobby, Pipeline transport, Public transit, Renewable energy, Tar sands crude

Alberta Canada: Don’t cheer the new premier yet. Demand she break the oil barons’ vice-grip

Repost from The Guardian
[Editor:  Significant quote: “…investment in oil and gas creates fewer jobs than practically any other industry. Investment in the clean energy sector, on the other hand, creates 7 to 8 times more work. The oil barons aren’t essential “job creators”; they’re economic suppressers.”  – RS

Don’t cheer Alberta’s premier yet. Demand she break the oil barons’ vice-grip

Alberta’s climate plan falls far short of what’s possible: unleashing a green economy that creates hundreds of thousands of jobs and transitions off the tar sands

By Martin Lukacs, 24 November 2015 14.12 EST, updated 25 November 2015 10.28 EST
The Syncrude Oil Sands site near to Fort McMurray in Northern Alberta. Photograph: David Levene for the Guardian

Alberta’s new climate plan is drawing praise from sources that have rarely got on with the oil-exporter – Al Gore, labour unions and some of North America’s biggest green groups. At first glance, it’s not hard to see why: Alberta is promising an accelerated phase-out of coal, increased funds for renewable energy and impacted workers, and a price on carbon. It’s a major step hard to imagine scarcely a year ago, when the province was still under a multi-decade Conservative reign.

So why then are the oil barons celebrating? Beaming with pride, the heads of Canada’s biggest tar sands companies flanked Premier Rachel Notley during Sunday’s announcement.

Their hope: that Alberta’s globally tarred reputation will suddenly be scrubbed clean. Despite the lofty rhetoric, the government has committed only to bringing emissions below today’s levels by 2030 – making it even less ambitious than what Stephen Harper’s federal petro-state offered. This might be what the Premier meant when she promised that new pipelines – which companies desperately need to export tar sands – would soon benefit from “creative lobbying and advocacy efforts.”

The tar sands now has a glossy new sheen. Alberta’s plan sets a cap on their emissions – an acknowledgement that tar sands will no longer grow infinitely. Except it’s so high as to allow a staggering forty percent increase over the next fifteen years. And if a Conservative government returns to power, could it abandon the policy and ensure nothing is accomplished? In other words, this is a cap big enough to drive a three-story tar sands truck through.

Here’s the other reason the oil barons are cheering: they know they could be getting squeezed a hell of a lot more. After all, Alberta’s New Democratic Party got elected with a mandate for bold change. Albertans were tired of oil-soaked politicians who let companies vacuum up billions in profit amidst skyrocketing inequality and deteriorating public services. And the oil price crash made clearer than ever before the cost of a boom-and-bust economy built on a single volatile commodity.

Climate science backs that mandate for rapidly transforming our economy: it tells us that since we’ve delayed for so long, small reforms will no longer suffice. And Albertans understand the scientific reports that the vast majority of fossil fuels need to stay in the ground to avert dangerous climate change – the impacts of which they’ve already experienced in flooded Calgary and a drought-parched countryside. But while good times fueled denial, the ecologically suicidal politics of the establishment could be ignored. When the oil shock hit, they also started looking economically reckless.

As the oil barons thrash about in a self-induced crisis, this should be the time to part ways with them. Exxon is being investigated in the United States for having discovered the lethal consequences of climate change in the 1970s, then lied about it for decades while doing everything to make this catastrophe a reality. Low oil prices – which don’t look to be going away – have already forced the cancellation of extraction projects and created a thaw in investment throughout Alberta’s oil patch. The cost of renewable energy has dropped at incredible and unexpected speed. And just weeks ago, President Obama rejected the Keystone XL pipeline. It was not, as Premier Notley put it, a “kick in [Alberta’s] teeth.” But you couldn’t pick a better moment to kick the oil barons to the curb.

None other than the Economist – not exactly a radical menace to big business – has argued that the oil price collapse offers a “once-in-a-lifetime opportunity” to transform a dysfunctional energy system.

The Alberta government could start by vanquishing the myth that the oil barons are economically indispensable. As the oil industry has thrown almost forty thousand people out of work, they have proved their interests never aligned with Albertans. The facts always told a different story: investment in oil and gas creates fewer jobs than practically any other industry. Investment in the clean energy sector, on the other hand, creates 7 to 8 times more work. The oil barons aren’t essential “job creators”; they’re economic suppressers.

So why – and this applies equally to Prime Minister Trudeau – fixate on building cross-country pipelines, when you could create more jobs in clean energy? Tackling climate change could be not just a public relations strategy to finesse the exporting of Alberta’s bitumen. It could be a chance to massively boost and transform the economy – making it more healthy, just and humane.

Look at what Germany – a similar, industrialized nation – has accomplished. In just over a decade, Germany has generated 30 percent of their electricity through renewables and created 400,000 good jobs in clean energy, much of it community-controlled and run by energy cooperatives. Using the right policies, Alberta could make this transition happen even more quickly, with greater benefits for First Nations, workers, and those getting the worst deal in the current economy.

It’s not too late to seize the historic opportunity. The NDP could still put forward a plan to create 200,000 good, green jobs over the next several years. Reports have laid out how this could happen with targeted investment: in accessible public transit, in energy-saving housing retrofits, in eco-system restoration, and by taking advantage of Alberta’s incredible potential for renewable energy. Nature didn’t make Alberta an oil province. Erect new signs: welcome to solar, wind and geothermal country.

How should Alberta pay for this transition? By putting their hands on the enormous profits of the industry that created the crisis in the first place. The new carbon tax – and the royalty hike the government must vigorously pursue – should be raised to send a stronger message to the market to jump-start a transition off oil.

Economists have shown a fair and effective tax would look more like $200 a tonne. $20 or $30 a tonne will not cut it – especially when half of the revenue generated will return as subsidies to oil and gas companies and dirty electricity generators. At this rate, most oil companies will be spending barely $1 more per barrel of oil. Polluters should be paying, not being paid off. The only message this will send the market is to “dig, baby, dig.”

Rolling out a plan to create a new, cleaner economy that’s more just and prosperous would convince voters there is an alternative to the oil economy. At that point the NDP could initiate a debate on a moratorium on tar sands development that has been called for by a hundred of North America’s top scientists. Scientific studies show we could get all of our electricity from renewables by 2030, not just 30 percent as Alberta now promises; and an economy entirely run by renewables by 2050. When popular movements can build pressure for such a transition, one thing will be sure: oil barons won’t be hand-clasping on the stage – they’ll be howling from the sidelines.

These movements, with Indigenous communities leading the way, have pushed the Alberta government this far. Now they must push them farther, and faster. It’s not time yet to cheer Alberta’s premier. Demand instead she break the oil barons’ vice-grip on our future.

Climate Change, ExxonMobil, Fossil fuel divestment, Keystone XL, Solar energy

Exxon, Keystone, and the Turn Against Fossil Fuels

Repost from The New Yorker
[Editor:  Significant quote: “No one’s argued with the math, and that math indicates that the business plans of the fossil-fuel giants are no longer sane. Word is spreading: portfolios and endowments worth a total of $2.6 trillion in assets have begun to divest from fossil fuels. The smart money is heading elsewhere.”  – RS]

Exxon, Keystone, and the Turn Against Fossil Fuels

By Bill McKibben, November 6, 2015
Protesters, in 2014, urging President Obama to reject the Keystone pipeline, which he did this week.
Protesters, in 2014, urging President Obama to reject the Keystone pipeline, which he did this week. Credit Photograph by Laura Kleinhenz / Redux

The fossil-fuel industry—which, for two centuries, underwrote our civilization and then became its greatest threat—has started to take serious hits. At noon today, President Obama rejected the Keystone Pipeline, becoming the first world leader to turn down a major project on climate grounds. Eighteen hours earlier, New York’s Attorney General Eric Schneiderman announced that he’d issued subpoenas to Exxon, the richest and most profitable energy company in history, after substantial evidence emerged that it had deceived the world about climate change.

These moves don’t come out of the blue. They result from three things.

The first is a global movement that has multiplied many times in the past six years. Battling Keystone seemed utterly quixotic at first—when activists first launched a civil-disobedience campaign against the project, in the summer of 2011, more than ninety per cent of “energy insiders” in D.C. told a National Journal survey that they believed that President Obama would grant Transcanada a permit for the construction. But the conventional wisdom was upended by a relentless campaign carried on by hundreds of groups and millions of individual people (including 350.org, the international climate-advocacy group I founded). It seemed that the President didn’t give a speech in those years without at least a small group waiting outside the hall to greet him with banners demanding that he reject the pipeline. And the Keystone rallying cry quickly spread to protests against other fossil-fuel projects. One industry executive summed it up nicely this spring, when he told a conference of his peers that they had to figure out how to stop the “Keystone-ization” of all their plans.

The second, related, cause is the relentless spread of a new logic about the planet—that we have five times as much carbon in our reserves as we can safely burn. While President Obama said today that Keystone was not “the express lane to climate disaster,” he also said that “we’re going to have to keep some fossil fuels in the ground rather than burn them.” This reflects an idea I wrote about in Rolling Stone three years ago; back then, it was new and a little bit fringe. But, this fall, the governor of the Bank of England, Mark Carney, speaking to members of the insurance industry at Lloyds of London, used precisely the same language to tell them that they faced a “huge risk” from “unburnable carbon” that would become “stranded assets.” No one’s argued with the math, and that math indicates that the business plans of the fossil-fuel giants are no longer sane. Word is spreading: portfolios and endowments worth a total of $2.6 trillion in assets have begun to divest from fossil fuels. The smart money is heading elsewhere.

Which brings us to the third cause. There is, now, an elsewhere to head. In the past six years, the price of a solar panel has fallen by eighty per cent. For years, the fossil-fuel industry has labored to sell the idea that a transition to renewable energy would necessarily be painfully slow—that it would take decades before anything fundamental started to shift. Inevitability was their shield, but no longer. If we wanted to transform our energy supply, we clearly could, though it would require an enormous global effort.

The fossil-fuel industry will, of course, do everything it can to slow that effort down; even if the tide has begun to turn, that industry remains an enormously powerful force, armed with the almost infinite cash that has accumulated in its centuries of growth. The Koch brothers will spend nine hundred million dollars on the next election; the coal-fired utilities are scurrying to make it hard to put solar panels on roofs; a new Republican President would likely resurrect Keystone. Even now, Congress contemplates lifting the oil-export ban, which would result in another spasm of new drilling. We’ll need a much larger citizen’s movement yet, if we’re going to catch up with the physics of the climate.

We won’t close that gap between politics and physics at the global climate talks next month in Paris. The proposed agreement for the talks reflects some of the political shift that’s happened in years since the failed negotiations at Copenhagen, but it doesn’t fully register the latest developments—almost no nation is stretching. So Paris will be a way station in this fight, not a terminus.

In many ways, the developments of the past two days are more important than any pledges and promises for the future, because they show the ways in which political and economic power has already started to shift. If we can accelerate that shift, we have a chance. It’s impossible, in the hottest year that humans have ever measured, to feel optimistic. But it’s also impossible to miss the real shift in this battle.

Bill McKibben, a former New Yorker staff writer, is the founder of the grassroots climate campaign 350.org and the Schumann Distinguished Scholar in environmental studies at Middlebury College.
Climate Change, ExxonMobil, Oil Industry, Oil industry knew, State regulation

Exxon Mobil Investigated for Possible Climate Change Lies by New York Attorney General

Repost from the New York Times
[Editor:  See also the NYT ‘s 11/6 follow-up story, “More Oil Companies Could Join Exxon Mobil as Focus of Climate Investigations.”  – RS]

Exxon Mobil Investigated for Possible Climate Change Lies by New York Attorney General

By Justin Gillis and Cllifford Krauss, November 5, 2015
An Exxon Mobil refinery in Los Angeles, Calif. The New York attorney general is investigating the oil and gas company. Credit T. Fallon / Bloomberg, via Getty Images

The New York attorney general has begun an investigation of Exxon Mobil to determine whether the company lied to the public about the risks of climate change or to investors about how such risks might hurt the oil business.

According to people with knowledge of the investigation, Attorney General Eric T. Schneiderman issued a subpoena Wednesday evening to Exxon Mobil, demanding extensive financial records, emails and other documents.

The investigation focuses on whether statements the company made to investors about climate risks as recently as this year were consistent with the company’s own long-running scientific research.

The people said the inquiry would include a period of at least a decade during which Exxon Mobil funded outside groups that sought to undermine climate science, even as its in-house scientists were outlining the potential consequences — and uncertainties — to company executives.

Continue reading Exxon Mobil Investigated for Possible Climate Change Lies by New York Attorney General →