Moving Oil. Fucked Four Ways From Sunday No Matter What.
And that's just moving it, not even looking at the production end of it.
More crude oil is moving around the U.S. on trucks, barges and trains than at any point since the government began keeping records in 1981, as the energy industry devises ways to get around a pipeline-capacity shortage to take petroleum from new wells to refineries.
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Oil delivered to refineries by trucks grew 38% from 2011 to 2012, according to the U.S. Energy Information Administration, while crude on barges grew 53% and rail deliveries quadrupled. Although alternatives are growing rapidly, pipelines and oceangoing tankers remain the primary method for delivering crude to refineries.
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In North Dakota, trains move 69% of the state's 800,000 barrels a day of crude, according to state figures. Energy companies say they value rail's ability to deliver crude to the highest-paying markets.
But the deadly runaway crude train crash in Canada's Quebec province in July, which incinerated a small town and killed at least 47 people, highlighted the risks of the mile-long crude trains crisscrossing the country. The U.S. government is imposing new regulations on oil shipments by rail.
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http://finance.yahoo.com/news/pipeline-capacity-squeeze-reroutes-crude-035600218.html
http://crosscut.com/2013/07/25/coal-ports/115690/pipelines-rails-danger-ahead/
Let me add, that having done some research, the claim of new regulations, which of course is not elaborated on in this article, is almost wholly bullshit insofar as adding meaningful protections; partly because it's almost impossible to do so: How do you replace all the single hull tanker cars with double hulled ones, for example, when only ONE company builds the double hulled ones and it has a 2 year wait? How are funds found for rerouting thousands of miles of tracks?
Here are the new regs:
On August 2, 2013 the Federal Railroad Administration ("FRA"
released Emergency Order No. 28, Notice No. 1 and Safety Advisory 2013-06 in response to the July 2013 tragedy in Lac-Mégantic, Quebec, Canada where a cargo train derailed, exploding portions of the 72 cars of petroleum crude oil it carried. The explosion killed 47 people and damaged 40 buildings in the small lake town. Investigators have determined that a number of factors when into causing this accident: for example, the nearly mile-long train was conducted by one person, and left unattended with insufficient braking despite the fact that the train rested on a hill. The investigation is ongoing.
The FRA requires that all railroad operators comply with this Emergency Order within 30 days of its issuance if any train operation consists of 20 rail car loads or intermodal portable tank loads holding a Class 3 (UN1267) flammable liquid or combustible liquid, such as petroleum crude oil. The Emergency Order contains the following new regulations.
No train transporting hazardous materials (including Class 3 materials) may be left unattended unless previously authorized.
If a railroad company does wish to leave its cars unattended, that company must develop a process - and then seek FRA approval of such a plan - that will ensure security of unattended trains.
Before leaving the train unattended, any employee of a railroad company operating a train holding hazardous materials must communicate with the train dispatcher concerning security steps, such as the number of handbrakes applied, the grade and terrain features of the track. This information must be recorded.
Employees involved in securing a train must participate in daily briefings on the work performed to ensure train security.
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http://www.jdsupra.com/legalnews/train-explosion-drives-federal-railroad-70252/
What the hell is the answer, beyond slowing oil production here and in Canada, and you know that's not going to happen.
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