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Railcar Bottleneck Looms for Oil
Wall Street Journal ^ | Dec. 21, 2014 | BOB TITA

Posted on 12/22/2014 6:14:48 AM PST by thackney

One-third of the crude oil hauled from North Dakota’s Bakken Shale region by railcars could be forced off the tracks and into expensive truck fleets in the next four years, according to a railcar-industry trade group.

The Railway Supply Institute says there aren’t enough shops to retrofit cars carrying flammable liquids in time to meet proposed federal deadlines, and that tens of thousands of cars will be idled as a result. The U.S. Department of Transportation wants tank cars carrying crude oil to be retrofitted with more puncture-resistant features in two years, and those carrying ethanol to be upgraded in three years. Those carrying other flammable liquids, such as heating oil and chemicals, have five years to be upgraded.

“They can’t all be modified by the deadline, and the only alternative would be to yank them out of service,” said Kevin Neels, a transportation consultant for the Brattle Group, which studied the impact of the proposed regulations for the railway institute, which represents railcar-leasing companies and car manufacturers. The DOT is expected to complete standards and compliance deadlines for tank cars by early next year.

Without enough tank cars, producers of oil, ethanol and other flammables could be forced to curtail production or switch to other, more expensive types of transportation, mainly trucks. The oil “is either going to move by trucks or it’s going to stay in the ground,” said Mr. Neels, adding that expanding the use of pipelines and river barges would provide only limited additional capacity. Greater reliance on trucks would add traffic to congested interstate highways and expose more motorists to flammable cargoes, Brattle says.

The American Petroleum Institute, the oil industry’s trade group, declined to comment directly on the Brattle report, but said it has warned the DOT’s...of looming output disruptions and car shortages...

(Excerpt) Read more at wsj.com ...


TOPICS: News/Current Events; US: North Dakota
KEYWORDS: dot111; energy; northdakota; oil; opec; rail
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1 posted on 12/22/2014 6:14:48 AM PST by thackney
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To: thackney

But if it saves even one life.....................................


2 posted on 12/22/2014 6:18:37 AM PST by Tupelo (I am feeling more like Phillip Nolan by the day.)
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To: thackney

Obama and his EPA will do everything they can to crimp carbon energy sources. The Keystone pipeline or for that any major pipeline project will never be approved by this or probably any Democratic administration.


3 posted on 12/22/2014 6:20:11 AM PST by allendale
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; cardinal4; ColdOne; ...

Thanks thackney.


4 posted on 12/22/2014 6:26:20 AM PST by SunkenCiv (https://secure.freerepublic.com/donate/ _____________________ Celebrate the Polls, Ignore the Trolls)
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To: thackney

Guess we’ll have to have the pipeline after all


5 posted on 12/22/2014 6:45:23 AM PST by yldstrk (My heroes have always been cowboys)
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To: thackney

Tanker trucks don’t and won’t have to be manufactured to anywhere near the new railcar requirements.


6 posted on 12/22/2014 6:46:37 AM PST by umgud (I couldn't understand why the ball kept getting bigger......... then it hit me.)
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To: thackney
The oil “is either going to move by trucks or it’s going to stay in the ground,” said Mr. Neels

Best Christmas gift ever for Obastard.

7 posted on 12/22/2014 6:49:49 AM PST by ProtectOurFreedom
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To: umgud

But trucks don’t have the same level risk carrying 200~250 barrels and decent ability to stop compared to 60,000 barrels or so and requiring a mile or more to stop.


8 posted on 12/22/2014 6:57:52 AM PST by thackney (life is fragile, handle with prayer.)
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To: thackney

Energy is the engine of freedom...

So the left will attack it from every angle. Tax it and regulate it as much as possible.


9 posted on 12/22/2014 6:59:13 AM PST by lacrew
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To: thackney

Warren Buffett lobbied in the WH with Obama to get these oil shipping contracts for his train cars. Then after he gets it, his train cars are involved in 3 bad accidents causing a large environmental disaster. But Obama got the money for campaigns, Buffett got the contract money, and back room handshakes were made. Now Warren needs to improve his rail cars and he can’t do it in time. So the Teamsters are up next with the trucks. Another disaster waiting to happen.


10 posted on 12/22/2014 7:01:34 AM PST by realcleanguy
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To: realcleanguy

The only question I have is it truth that all three wrecks were BNSF trains?

If not, then Warren is off the hook to some degree.


11 posted on 12/22/2014 7:07:43 AM PST by wita
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To: realcleanguy

I think this is a scam on the part of Buffett to jack up the price of shipping the oil by rail. That POS has been working actively behind the scenes to kill the pipeline.


12 posted on 12/22/2014 7:08:27 AM PST by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: realcleanguy

his train cars are involved in 3 bad accidents

Which three do you attribute to BNSF?


13 posted on 12/22/2014 7:14:13 AM PST by thackney (life is fragile, handle with prayer.)
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To: RJS1950

By increasing his operating costs?


14 posted on 12/22/2014 7:29:37 AM PST by posterchild (It takes a politician to declare a settled science.)
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To: thackney

All three Burlington Northern train crashes involving oil cars. Warren owns Burlington Northern. I’m not counting the other train crashes that Warren doesn’t outright own.
One in 2012, one in 2013 and one this year. Here is one of them I found quickly.

http://atomicinsights.com/burlington-northern-oil-train-explodes-and-burns-in-casselton-nd/

Following the DOT site on trains can keep you up to date on the dangers of train and oil

http://dot111.info/category/recent-derailments/

Here is one on Propane for Burlington Northern. Give me a little while and I can find the others. But there have been 3 in the Dakotas involving Burlington Northern in the last 3 years with oil cars.


15 posted on 12/22/2014 7:29:41 AM PST by realcleanguy
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To: realcleanguy

But the one that made all the headlines and preciptated the FRA rule was in Canada on the CN

http://www.foxnews.com/world/2014/01/08/evacuations-ordered-after-freight-train-derails-catches-fire-in-new-brunswick/

and the cause of this one was not motion but allowing the train to idle unattended in a damaged condtion

http://en.wikipedia.org/wiki/Lac-Mégantic_rail_disaster

Another punishing blow by our government to business having to rebuild railcars for operating failures.


16 posted on 12/22/2014 7:37:36 AM PST by sgtyork (Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy)
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To: sgtyork

And it continues. The Bakken oil being delivered by trains instead of a pipeline is a major problem
http://www.desmogblog.com/2014/03/17/record-year-oil-train-accidents-leaves-insurers-wary


17 posted on 12/22/2014 7:41:25 AM PST by realcleanguy
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To: thackney

Keep building and retrofitting rail cars. Rail is the best way to transport this kind of quantity overland quickly and safely. Build the pipeline too. Build more trucks for local deliveries of refined product. Lower the price for diesel and kerosene. Stop using corn for fuel and use it for whiskey instead.


18 posted on 12/22/2014 7:46:54 AM PST by Fester Chugabrew (Even the compassion of the wicked is cruel.)
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To: Tupelo

Especially if they are gay, seniors, or female minority children.


19 posted on 12/22/2014 8:15:27 AM PST by JSteff (It was ALL about SCOTUS.. We are DOOMED for several generations. . Who cares? Dem's did and voted!)
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To: thackney

Another reason to build the Keystone Pipeline.

The DOT is working hard to keep the use of fossil fuels to a minimum.


20 posted on 12/22/2014 8:19:37 AM PST by upchuck (Too much ME, not enough G.)
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