Grain train derails, hits oil train near Cassleton, ND

[Ban my account ffs!]

http://www.startribune.com/local/238070771.html

The collision caused a spectacular explosion, as can be seen in the video.

The entire town of Cassleton, ND (2300 people) has been evacuated because the cold, high pressure in the region would allow the smoke and soot to settle into the community. 

There will surely be calls to crack down on this.  Opposition to pipelines means more oil must be transported by railcar, where spills become muuuch more likely.  From a few thousand oiltankers running on rails through MN in 2008, we're gonna be at 600,000+ this year.

Of course with opposition to pipelines and the lack of capacity increase on rails, the interstates will start filling up with oil trucks.

The railroads in the region are already operating beyond capacity.  Congestion and delays have been so bad in recent weeks that Amtrak has had to cancel its service due to what would be unacceptable delays of a day or more sitting in North Dakota.

Oil boom, meet fantastically inadequate infrastructure!

[DINGO Joe]

Anytime ND feels like it, they can regulate such things.  Though pipelines to the East and especially West coasts are difficult things to accomplish.

[anvi]

The BNSF spokeswoman said "we're very thankful it didn't happen in the city (of Fargo) limits."  So am I, I have a few family members in Fargo.  I'm glad no one was hurt in the collision either.  But it's a pretty cold time for 2,300 people to be evacuated from their homes.

[DINGO Joe]

On a technical note, Bakken crude is a light oil and most of the refineries that are geared for that oil are in the East or in Canada.  A small refinery (20,000 bpd)  is being built in ND and a second has been proposed.  Eagle Ford crude in TX also is a light oil and it's already overwhelmed the refineries in TX that handle such a crude. In fact, about 100,000 bpd are being shipped to Canadian refineries that can process light oils.  Canada is the only country that non processed oil can be shipped to legally. 

The most logical solution would be for some US refineries, especially on the Gulf coast to convert to light oil, but that takes time and money.  Right now, US refiners are exploiting the difference in price between US crudes and Brent (world crudes)--WTI is about $12 below Brent and Bakken and Canadian tar sand are below that, so they have no desire to stop and retool.

The two countries that we used to import light oil from, Nigeria and Angola have seen their exports to the US virtually disappear:

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W_EPC0_IM0_NUS-NNI_MBBLD&f=W

http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=W_EPC0_IM0_NUS-NAO_MBBLD&f=W

With foreign supplies almost completely pushed out, there are rapidly only three alternatives--retool some refineries, or change the law to export crude oil, or stop expanding production.  I don't believe the law will be changed, and it's hard to convince refiners to stop making money hand over fist, so #3 may actually happen.

[Link]

Opposition to pipelines means more oil must be transported by railcar, where spills become muuuch more likely.

Do you have a source for this?  I mean there are a lot of pipeline leaks and ruptures that go unreported and certainly don't make the national news the way a train fireball does.  How many train derailments with associates spills or fireballs are there?



While spills slip under the radar all the time I think if there were three train fireballs in a week we would hear about it.  Actually one of those spills in the article is the Canadian derailment I heard about.

[Link]

Opposition to pipelines means more oil must be transported by railcar, where spills become muuuch more likely.

Okay I had to do some digging because I heard this story on the radio.  I think I found out why you think this...