Category Archives: Crude By Rail

Cap-and-trade, Clean energy, Climate Change, Crude By Rail, Marine transport, Rail Safety, State regulation, Tar sands crude, Tar sands invasion

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.
Bakken Crude, Crude By Rail, Derailment, Ethanol, Explosion, Tar sands crude, Volatile gases, Volatility

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]

Bay Area Refineries, Crude By Rail, Emergency Readiness & Response, Marine transport, Oil prices, Spill prevention and response, Tar sands crude, Water contamination

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.

Bakken Crude, Casselton ND, Crude By Rail, Derailment, Evacuation zone, Explosion, Fire, Railroad workers

Derailed oil train’s crew told investigators they had seconds to escape

Repost from McClatchy Washington Bureau

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.”