• 2 minutes U.S. Presidential Elections Status - Electoral Votes
  • 5 minutes “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 7 minutes United States LNG Exports Reach Third Place
  • 21 mins https://www.prageru.com/video/whats-wrong-with-wind-and-solar/
  • 14 hours Here it is, the actual Complaint filed by Dominion Voting Machines against Sydney Powell
  • 1 day Pollster Frank Luntz released a poll today showing 90% of those that voted for Trump in November would vote for him again.
  • 6 hours Tonight Twitter took down Trump's personal account permanently. Trump responded on the POTUS account.
  • 1 day Do Republicans like Liz Cheney, Adam Kinzinger, Mitt Romney and now McConnell think voting for Impeachment can save the party ? Without Trump base what is the Republican constituency ? It's over.
  • 11 hours CNN's Jake Tapper questions double amputee purple heart recipient GOP Rep's commitment to democracy. Tapper is a disgrace.
  • 1 day ICE Engines Hear to Stay Regardless of War Against
  • 12 hours A Message from President Donald J. Trump - 5 minutes from The White House directly
  • 15 hours The World Economic Forum & Davos - Setting the agenda on fossil fuels, global regulations, etc.
  • 1 day Minerals, Mining and Industrial Ecology
  • 1 day a In 2020, we produced and delivered half a million cars.
  • 1 day Trump Supporters Just Handed a Huge Propaganda Victory to China
  • 2 days Evidence is evidence, voter fraud by state
Oil Jumps On Significant Crude Inventory Draw

Oil Jumps On Significant Crude Inventory Draw

Oil prices rose further on…

Why A Fracking Ban Won’t Kill U.S. Shale

Why A Fracking Ban Won’t Kill U.S. Shale

Fracking has been the cornerstone…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

Why the U.S. Oil Boom may go off the Rails

Lawmakers and U.S. regulators began asking questions about the safety of transporting oil on the nation's rail system following a December derailment in North Dakota. The emerging anxiety about midstream issues may create new problems for U.S. oil.

The Pipeline and Hazardous Materials Safety Administration issued a safety alert following the late December derailment of a BNSF line carrying oil from the Bakken reserve area in North Dakota. No injuries were reported in the 106-car accident near Casselton, though the derailment sparked an explosion and fires that burned for more than 24 hours.

The PHMSA, a division of the Department of Transportation, advised shippers of the potential material risks and hazards associated with crude oil extraction and production.

"PHMSA also advises emergency responders to be alert to the risks of crude oil transportation due to the increased volume of transportation and the wide range of crude oil properties," the agency said.

The Association of American Railroads, which welcomed the PHMSA advisory, said 495 million barrels of petroleum and petroleum products were delivered on the U.S. rail system last year, a 31.1 percent increase from the previous year.

The North Dakota Industrial Commission said more than 90 percent of the state's oil production comes from the Bakken and Three Forks areas. October's production level of 941,637 barrels of oil per day was a new all-time record, though there isn't enough pipeline capacity to keep up.

Robert Harms, chairman of Republican party in North Dakota, said oil production in the state may be too much too soon and U.S. Sen. Charles Schumer, D-N.Y., said he wanted federal authorities to either overhaul, or eliminate, older rail cars involved in the BNSF derailment.

So-called DOT-111 rails cars were involved in a 2013 accident in Lac-Megantic, Quebec, which left more than 45 people dead after a train carrying Bakken oil slipped its tracks and exploded.

Casselton Mayor Ed McConnell said his town escaped a major catastrophe, though it's not the first time the area had a brush with rail disaster – it's the fourth in less than a decade. Nine years ago, a train carrying coal slipped its rail and McConnell said it's time to get serious about rail safety.

North Dakota Gov. Jack Dalrymple met with Matt Rose, CEO and Chairman of BNSF Railway, to discuss rail safety issues in the wake of the Dec. 30 derailment.

"We’re going to pursue this until we’re satisfied that the appropriate measures are in place for maximum public safety," the governor said.

States like North Dakota are helping the United States oust Saudi Arabia from the top of the international oil heap. Production gains, however, have been followed by a series of major pipeline spills and derailments. With fracking concerns shifting to the background, it's midstream issues that could push the U.S. oil trajectory off the rails.

By. Daniel J. Graeber of Oilprice.com


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Rob on January 07 2014 said:
    I guess Big O can say the XL pipeline is safer than rail and will actually reduce our carbon footprint.
  • mlebauer on January 07 2014 said:
    Simple solution: build pipelines.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News