Oil Trains Face Test in New Safety RulesSource: Reuters | 21 July 2014
North Dakota’s Bakken oil patch has thrived thanks in large part to the once-niche business of hauling fuel on US rail tracks. New safety rules may now test the oil train model.
Within weeks, the Obama administration is expected to unveil a suite of reforms that will rewrite standards conceived long before the rise of the shale oil renaissance, at a time when crude rarely moved by rail and few Americans had ever seen the mile-long oil trains that now crisscross the nation.
Taken separately, the changes appear incremental—a question of a fraction of an inch of steel in tank cars, a few miles an hour of speed or rerouting trains; stripping explosive gases out of the oil would be costly but not complex.
But refiners, oil producers, traders, and even railroads have become so reliant on such shipments that the reforms, taken together, could upend a practice that has bolstered bottom lines across a wide swathe of industrial America. It may also complicate shipments of one-tenth of US crude to refineries.