Category Archives: Oil Industry

Bomb Trains: a whole new spin on the 1%

Repost from The Martinez Gazette

Martinez Environmental Group: The 1 percenters

May 8, 2014 | by GUY COOPER,  Special to the Gazette

This is not about income inequality. Doesn’t involve Warren Buffett or the Koch brothers (er, not directly anyway). This is about oil train safety.

Another crude oil train just derailed this past week, exploding cars dumped into the James River in Lynchburg, Virginia. Could have been much worse. A 100-car oil train right in town. Could have destroyed the town. But it was only going 24 miles per hour, was properly operated and apparently had no mechanical problems. It’s thought the ground along the riverbank gave way beneath the tracks. That’s comforting.

In the midst of this crude-by-rail (CBR) rush, the railroads repeatedly tout a 99 percent safety record. Really? What does that mean? Ninety-nine percent of what? How do you account for all of these accidents lately?

Amazing how fast this CBR infrastructure ramped up. An almost 50-fold increase in six years. I have no idea how something like that can be accomplished, but I do know they didn’t sweat all the small stuff like, oh, issues of life and death, health and safety.

U.S. rail is reported to have spilled more oil in 2013 than in the previous 37 years combined, 1.15 million gallons. That figure doesn’t even include Canadian spills like the 1.5 million gallons at Lac Megantic alone. The Association of American Railroads reported carrying about 434,000 carloads of crude last year, 12.5 billion gallons, so a few million gallons spilled here or there is just a drop in the bucket. The rail industry quotes a 99.998 percent safety record based on billion tons per mile successfully delivered to its destination. In other words, if one car of a 100-car train falls off the tracks, splits open and blows up, but the rest of the cargo survives unscathed, the safety rating of that train remains 99 percent.

I guess that’s a useful stat to entice oil producers, but it’s not what interests me. I want to know how often the trains run into trouble. A 2013 U.S. State Department assessment comparing pipeline to rail noted trains have an “increased likelihood of spills.” The more trains, the more likely an accident. From 2008 to 2013, the annual number of carloads of crude on the rails jumped from around 9,500 to over 400,000. The number of accidents likewise skyrocketed.

Perhaps a more useful way to look at things from our side of the tracks comes from a Tim Truscott Facebook page that maintains a running list of bomb train derailments in North America (https://www.facebook.com/notes/bomb-trains/2014-the-year-in-bomb- train-derailments/250370288468161). Found it via Roger Straw’s terrifically informative blog across the water, The Benicia Independent (benindy.wpengine.com).

Mr. Truscott states, “By ‘bomb train,’ I mean those trains hauling one or more cars of crude oil, fuel oil, ethanol, methanol, propane, butane, liquified natural gas (methane), vinyl chloride, ammonium nitrate or high-nitrogen fertilizer such as anhydrous ammonia, phosphoric acid or some other highly volatile or especially toxic or caustic cargo. I’m also counting derailments if the engine or engines derail and cause a diesel fuel spill. So far in North America in 2014, we have seen an average of one bomb train derailment every five days.”

He lists 23 incidents so far this year. I suppose that’s just 1 percent of something. I prefer to think of it as one per week.

So when I hear that whistle blow and I halt my walk to the waterfront as the next oil train passes, I’ll have to wonder. Is that this week’s one percenter coming down the line?

Multiple detailed analyses: Bakken crude has high levels of volatile organic compounds and alkane gases

Repost from Salon

Why oil-by-rail is an explosive disaster waiting to happen

A recent spate of fiery train accidents all have one thing in common: highly volatile cargo from North Dakota
Lindsay Abrams  |  May 7, 2014
 Why oil-by-rail is an explosive disaster waiting to happenSeveral CSX tanker cars carrying crude oil in flames after derailing in downtown Lynchburg, Va., Wednesday, April 30, 2014. (Credit: AP/Luann Hunt)

In case the near continuous reports of fiery, deadly oil train accidents hasn’t been enough to convince you, Earth Island Journal is out with a startling investigative piece on North Dakota’s oil boom and the dire need for regulations governing that oil’s transport by rail.

The article is pegged to the train that derailed and exploded last summer in Quebec, killing 47 people, although it just as well could have been the story of the train that derailed and exploded in Alabama last November, the train that derailed and exploded in North Dakota last December, the train that derailed and exploded in Virginia last week or — let’s face it — any future accidents that many see as an inevitability.

The Bakken oil fields in North Dakota are producing over a million barrels of crude oil a day, more than 60 percent of which is shipped by rail. All that greenhouse gas-emitting fossil fuel is bad enough; that more oil spilled in rail accidents last year than the past 35 years combined is also no small thing. But the particular chemical composition of Bakken oil lends an extra weight to these concerns: according to the Pipeline and Hazardous Materials Safety Administration, it may be more flammable and explosive than traditional crude.

The industry denies that there’s anything special about Bakken crude, but Scott Smith, a researcher at the nonprofit group Water Defense, has evidence to the contrary. From Earth Island Journal:

Smith now has conducted detailed analyses of Bakken crude from the three accident sites in Quebec, North Dakota, and Alabama, along with baseline data. He says he is the only outside expert to have done so and has shared those lab results with Earth Island Journal. Even government agencies – including the US Department of Transportation (DOT), which is tasked with regulating oil by rail transport – have been largely kept in the dark about the qualities that make Bakken crude so volatile as well as how it varies throughout the formation. “Despite the energy industry making assurances to DOT more than two months ago, we still lack data we requested and that energy stakeholders agreed to produce,” a Department of Transportation spokesperson told Reuters in March.

All the samples collected and tested by Smith share the same high levels of VOCs [volatile organic compounds] and alkane gases in what Smith says are exceptional combinations. According to Smith, 30 to 40 percent of Bakken crude is made up of toxic and explosive gases. Typically these gases are separated out of the crude oil before transport. A recent report by the Pulitzer Prize-winning website Inside Climate News speculates that because of the whirlwind pace of production in North Dakota and the absence of processing facilities, volatile gases like propane are not being removed at the wellhead.

There’s still a lot we don’t know about Bakken crude, Smith says. This includes the presence of metals, radioactive materials, and gases. Because of the varying depths of the Bakken formation, two wells a mile apart can produce crude oil with very different characteristics. This makes sampling and testing especially tricky. It also makes industry cooperation essential.

Smith still has vials of Bakken crude that he pumped out of the ground nearly a year ago. “When it gets above 80 degrees and you shake them,” he says, “it bends the top of the container. Any form of static electricity will ignite this stuff and blow it up.”

Independent reviews corroborate Smith’s findings. Chemists with California’s Office of Spill Prevention and Response examined Smith’s samples and concluded that the Bakken crude “resembles a typical crude oil that has been mixed with diesel or a diesel/gasoline mix. … Obviously, flammability and volatility are greater concerns with Bakken than with ‘typical’ heavier crudes.” In February The Wall Street Journal, based on its own analysis of data collected by the Capline Pipeline in Louisiana, reported that oil coming from the Bakken has significantly more combustible gases and a higher vapor pressure than oil from other formations. In early March, Canada’s Transportation Safety Board (TSB) issued its own findings from oil samples taken from the nine tank cars that did not derail in Lac-Mégantic. While the TSB does not contend, as Smith does, that the Bakken oil is significantly different from other light sweet crudes, the agency also found that oil coming out of the Bakken has a very low flashpoint – which means that it ignites easily or at a relatively low temperature – a level more similar to unleaded gasoline. When the rail cars went off the track in Lac-Mégantic, sending up sparks and static charges, it didn’t take much to set off explosions. “All of the conditions required for ignition to occur were present,” the TSB report concluded.

It’s a frightening warning worth repeating: without heightened safety standards and federal oversight, the many cities and communities through which trains carting Bakken crude pass are helpless in the face of a potential disaster. “I live in fear of waking up to a bunch of text messages and emails because there’s been a 100-car explosion in Chicago and 300,000 people are vaporized,” Smith said. “Unfortunately, that is a very real possibility if something’s not done.”

Lindsay Abrams is an assistant editor at Salon, focusing on all things sustainable.

SF Chronicle: California refiners double volume of oil imported by rail

Repost from the San Francisco Chronicle

California refiners double volume of oil imported by rail

Lynn Doan  |  May 3, 2014

California, country’s biggest gasoline market, more than doubled the volume of oil it received by train in the first quarter as deliveries from Canada surged.

The third-largest oil-refining state unloaded 1.41 million barrels in the first quarter, up from 693,457 a year ago, data on the state Energy Commission’s website showed last week. Canadian deliveries made up half the total and were eight times the number of shipments a year earlier. Supplies from New Mexico jumped 71 percent to 173,081 barrels. Those from North Dakota slid 34 percent to 277,046.

Projects in works

West Coast refiners including Tesoro Corp. and Valero Energy Corp. are developing projects to bring in more oil by rail from reserves across the middle of the U.S. and Canada to displace more expensive supplies. Crude production in the federal petroleum district that includes California and Alaska, has dropped every year since 2002, while drillers are extracting record volumes from shale in states including North Dakota and Texas.

The surging flows of domestic oil to California “reflect a continuing improvement in crude-by-rail receiving facilities here,” said David Hackett, president of Stillwater Associates, an energy consultant.

Rail shipments still account for a small fraction of California’s oil demand. In February, the state imported more than 20 million barrels of crude from abroad, according to the U.S. Energy Information Administration.

Crude from North Dakota and Canada trades at a discount to Alaska North Slope oil, which rose 36 cents to $107.78 a barrel in early trading on Friday. Western Canada Select, a heavy, sour blend, gained 36 cents to $82.88. North Dakota’s Bakken crude also gained 36 cents to $95.28.

It costs $9 to $10.50 a barrel to send North Dakota’s Bakken oil by rail to California, according to Tesoro, the West Coast’s largest refiner.

Series of accidents

Trains are bringing more oil to California even as projects face more regulatory scrutiny after a series of accidents involving rail cars carrying fuel. The most recent was on Wednesday, when a CSX Corp. crude train derailed in Lynchburg, Va., igniting a fire that led to an evacuation. A derailment in Quebec in July killed 47 people.

The U.S. Transportation Department is studying changes to shipping oil by rail, and in February railroads agreed to slow such trains in urban areas. Canada ordered a phase-out of older tank cars last month.

Officials in Benicia said Thursday that they’re delaying until June an environmental report on a rail-offloading complex that Valero has proposed at its refinery in the North Bay city. The San Antonio company originally planned to finish the project by the end of last year.

Tesoro is six to eight weeks behind schedule in receiving regulatory permits for a rail-to-marine crude trans-loading terminal in Washington state, the company, also based in San Antonio, said Thursday. It now expects to receive the permits late this year or in early 2015, with construction taking about 12 months, Scott Spendlove, the chief financial officer, said on a conference call with analysts.

Alaskan oil output has declined every year since 2002 as the yield from existing wells shrinks.

Lynn Doan is a Bloomberg writer.

Rachel Maddow: Canada forcing new U.S. regulations; Obama must act decisively

Repost from MSNBC / The Rachel Maddow Show
[Editor: This is a lengthy video, (sorry about the commercial ad), but well worth your time.  After exploring oil pipeline spills, Maddow digs into the incredible increase in crude oil transport by rail, and the explosions and the need for quick action from the Obama administration.  Near the end, she interviews Wall Street Journal energy reporter Russell Gold, author of The Boom.    – RS]

Public safety at risk by oil train shipments

 Rachel Maddow, 05/02/2014

Russell Gold, senior energy reporter for the Wall Street Journal, talks with Rachel Maddow about the safety shortcomings inherent in shipping oil by rail, particularly the highly flammable Bakken crude.