Trains carrying more oil across country amid boom
It’s not as safe as pipelines, but plans for new ones have stalled.
The Associated Press
BILLINGS, Mont. — Energy companies behind the oil boom on the Northern Plains are increasingly turning to an industrial-age workhorse, the locomotive, to move their crude to refineries across the U.S., as plans for new pipelines stall and existing lines can’t keep up with demand.
Delivering oil thousands of miles by rail from the heartland to refineries on the East, West and Gulf coasts costs more, but it can mean increased profits — up to $10 or more a barrel — because of higher oil prices on the coasts. That works out to about $700,000 per train.
The parade of mile-long trains carrying hazardous material out of North Dakota and Montana and across the country has experts and federal regulators concerned. Rail transport is less safe than pipelines, they say, and the proliferation of oil trains raises the risk of a major derailment and spill.
Since 2009, the number of train cars carrying crude hauled by major railroads has jumped from about 10,000 a year to a projected 200,000 in 2012.
“This is all occurring very rapidly, and history teaches that when those things happen, unfortunately, the next thing that is going to occur would be some sort of disaster,” said Jim Hall, a transportation consultant and former chairman of the National Transportation Safety Board.
Rail companies said the industry places a priority on safety and has invested heavily in track upgrades and taken other measures to guard against accidents.
The environmental fears are ironic. Oil trains are gaining popularity partly because of a shortage of pipeline capacity — a problem that has been worsened by political opposition on environmental grounds to such projects as TransCanada’s stalled Keystone XL pipeline. That project would carry crude oil from Canada and the northern U.S. to the Gulf of Mexico.
Even when pipelines get approval, the process takes a long time. Oil-loading rail terminals can be built in months, versus three to five years for pipelines to clear regulatory hurdles and be put into service, said Justin Kringstad of the North Dakota Pipeline Authority.
Wayde Schafer, a North Dakota spokesman for the Sierra Club, described rail as “the greater of two evils.” |
