• 5 minutes Oil prices forecast
  • 8 minutes Nuclear Power Can Be Green – But At A Price
  • 11 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 16 minutes Europe Slipping into Recession?
  • 2 hours *Happy Dance* ... U.S. Shale Oil Slowdown
  • 8 hours Socialists want to exorcise the O&G demon by 2030
  • 6 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 7 hours UK, Stay in EU, Says Tusk
  • 1 day Germany: Russia Can Save INF If It Stops Violating The Treaty
  • 2 days Connection Between Climate Rules And German's No-Limit Autobahns? Strange, But It Exists
  • 2 days Conspiracy - Theory versus Reality
  • 8 hours How Is Greenland Dealing With Climate Change?
  • 2 days Chevron to Boost Spend on Quick-Return Projects
  • 1 day Maritime Act of 2020 and pending carbon tax effects
  • 2 days U.S. Treasury Secretary Mnuchin Weighs Lifting Tariffs On China
  • 2 days Regular Gas dropped to $2.21 per gallon today
Oil May Never Return To The Triple-Digits

Oil May Never Return To The Triple-Digits

Fewer and fewer energy professionals…

Oil Prices Lag Despite Early OPEC Cuts

Oil Prices Lag Despite Early OPEC Cuts

OPEC already started cutting crude…

Rail Safety Regs Could Hit Canadian Oil Sands

New regulations designed to increase the safety of transporting crude oil by rail could mean heightened scrutiny on oil coming from Canada’s oil sands. The February 25 rule issued by the U.S. Department of Transportation called for all crude shipped by rail to be tested and properly classified. This would have the effect of ensuring that highly flammable crude oil is carried in safer rail cars, which would theoretically reduce the chances of a major spill or explosion.

The rule may adversely impact Canadian oil sands, as they could be reclassified from the “Group III” designation to a much stricter “Group I” or “Group II,” reserved for more dangerous and toxic substances. This would require tank-cars to have stronger standards, potentially raising costs for oil that has up to now been shipped by lighter rail cars. However, some oil sands companies maintain that if the bitumen is not diluted with lighter forms of oil, they can avoid regulation because it would count as a separate product and wouldn’t trigger the rule.

Related Article: Oil Train Derailments Reaching Crisis Point

Canada is currently shipping more than 200,000 barrels of oil sands by rail. That number is set to more than double to 500,000 by the end of 2014. Federal investigators recently concluded that the train that derailed outside of Pittsburgh on February 13 and spilled 3,500 to 12,000 gallons of oil was in fact carrying heavy crude from Canada. The series of train crashes has provided fodder for both oil sands supporters and detractors. Supporters argue that building more pipeline capacity would reduce the occurrence of these incidents, while environmentalists point to these events as evidence that oil sands are inherently more dangerous.  

By Charles Kennedy of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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