MAY 2016: AAR urges DOT to adopt a thermal protection requirement for flammable liquid cars, which exceeds DOTs current standard and which all thermal blanket manufacturers currently meet. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. SEPT. 2016: AAR files comments to DOTs NPRM on oil spill response plans seeking clarification on a variety of issues, including how close to navigable waters does a rail line have to be to require a plan and the definition of environmentally sensitive areas, among others. Cost basis and return based on previous market day close. In 2014, these East Coast refineries collectively consumed about 1.3 MMbbl/d of light, sweet crude oil, making them a natural match for the oil produced from the Bakken/Three Forks play. Canada is the primary supplier of foreign oil to the United States. Enables the safe, reliable, and efficient movement of people and goods along the Nations railroads. APR. Indeed, the railroads own figures, as published by the Association of American Railroads, show that revenue ton-miles per employee the best benchmark for measuring productivity has soared five-fold since 1980, from 2.1 million revenue ton-miles per employee to almost 11 million revenue ton-miles per employee today. Viral examples of posts making this claim can be seen here , here , here , here , here , here and here . And, it looks like that growth will continue. Among these are requirements for web-based training for emergency responders, emergency preparedness and training grants, specifications for real-time emergency response information, enhanced tank car standards and a mandatory phase-out schedule for older tank cars. These lessors are the ones ultimately responsible for the fact that that the vast majority of oil trains today are largely composed of older models so riddled with obvious flaws that federal safety investigators have for years urged the entire fleet be retrofitted. Not only have they avoided pulling the hazardous DOT-111 tank cars out of service to retrofit them, but they have opposed and delayed meaningful federal regulation at every turn. There are two transcontinental networks in Canada (Canadian Pacific Railway and Canadian National Railway), both of which have significant operations in the United States. Burlington Northern Santa Fe Railroad (BNSF), owned by President Obama-backer Warren Buffett, would lose billions of dollars in oil freight if the Keystone XL Pipeline were approved. I am primarily an investor interested in creating passive income streams through dividends. The company participated in several high-profile launches including MidSouth Rail Cooperation and Montana Rail Link. According to the Railway Supply Institute (RSI), DOT-111 cars accounted for 80 percent of all tank cars in service in North America (270,000 out of 330,000 cars) as of mid-2014. Known as one of the greenest commercial buildings in the world, since it opened its doors on Earth Day in 2013 the Bullitt Center has been setting a new standard for sustainable design. In fact, roughly80 percentof all the tank cars registered in North America are owned by companies that lease the tank cars to shippers. The meme (which I wont link to because I dont want to get slapped down for spreading fake news) went like this: The Keystone pipeline. Ridiculus sociosqu cursus neque cursus curae ante scelerisque vehicula. AAR advocates an aggressive retrofit or phase-out program for crude service tank cars. Reuters never asks this question, though it concedes moving oil by rail is less efficient. Further, there are more ways to play this trend than just investing in the railroads themselves. 2016: DOT rejects AARs request to improve the standard for thermal protection based on a technicality. A reasonable individual might have good reason to assume the upcoming bargaining round will be favorable to employees. Prior to joining IHS, Birn held various senior advisor positions in Canadas Department of Natural Resources, where he was involved in a number of energy issues. The tracks are owned by the railroad companies that laid them. The second table includes freight cars privately owned by rail shippers and leasing companies. Warren Buffett is one of the more famous investors to have reaped the rewards from this trend, through his purchase of Burlington Northern Santa Fe Corp., one of the largest railroad companies in the U.S. It's oil. Before oil prices declined in late 2014, IHS had anticipated that a combination of new pipelines, a rise in regional refinery demand, and moderation in oil production growth would lead to a peaking of crude rail movements between 2015 and 2016 near 1.5 MMbbl/d (an increase of nearly 400,000 bbl/d over 2014). Follow us on The first claim in these posts is that Warren Buffett, the American business tycoon and billionaire, donated $58 million to Joe Bidens 2020 campaign. An official website of the United States government Here's how you know. AUG. 2009: AAR begins to upgrade industry tank car standards that exceed the safety standards of U.S. Department of Transportation (DOT)-111 tank cars. The internet is not known as a purveyor of truth. If you are a California resident, refer to ourCA Privacy Notice, which explains your CA privacy rights and how you can exercise them. You dont get bargains on things like that, Buffett said in the interview. The revival of shipping crude on railcars is still in the early days, and unconventional oil resource plays are expected to provide opportunities for crude to move by rail for many years to come. However, railroads including Union Pacific and BNSF, owned by billionaire Warren Buffett, are telling oil shippers that they do not want them to move loaded crude trains to private rail car. Maybe its the fake Robin Williams quote your aunt shared on Facebook. Put solar panels on it. The future of oil-by-rail is going where pipelines do not or cannot go. (There are also benefits to moving oil by rail, of course, especially over short distances.) Share sensitive information only on official, secure websites. After all, railroads are among todays few solidly profitable industries in America, and Wall Street confirms they have unprecedented pricing power. APR. 1750 New York Avenue, NW, 6th Floor, Washington, D.C. 20006. PERKINS FURNITURE TRANSPORT MOVING VAN. JAN. 2015: AAR further modifies industry best practices to increase commodity flow information provided to local emergency response agencies for all hazmat transported through their communities. FEB. 2014: The nations major freight railroads issue voluntary safety initiatives for the transportation of CBR, including new operating practices, including: FEB. 2014: DOT issues an Emergency Order on the classification and packaging of crude oil. "There has been unprecedented growth in the energy industry." Essentially, market entrepreneurs create value for society by serving the wants and needs of consumers. As new pipelines were built, they fell sharply over the next few years, but carloads rebounded somewhat in 2018 and 2019. I am not receiving compensation for it (other than from Seeking Alpha). For instance, Valero (VLO -1.52%) is planning on making greater use of rail and barge transport to move Canadian crude to its Gulf Coast refineries. This data is compiled from reports of the Association of American Railroads (AAR) and reflects . In the U.S., 100% of our natural gas is shipped by pipeline. BNSF remains a money machine at Berkshire Hathaway, and its preposterous to think that canceling a pipeline that was expected to deliver 300 million barrels of crude each year will not result in increased rail transport of crude (even if other pipelines pick up much of the slack.). For sure, investment funds are behind the anti-labor policies at Wal-Mart and policies that export good American jobs overseas. "We are responding to a growing demand," said Ed Greenberg, spokesman for Canadian Pacific. Thousands of protestors fought the expansion of a German coal mine in vain, England finally joins Europe in banning single-use plastic foodware, The secretive legal weapon that fossil fuel interests use against climate-conscious countries. Canadian crude finds its way to U.S. refineries via rail and barge Another major North American oil production center that is also being serviced by railroad shipments is Alberta's oil sands. Let's take a look at how some of these alternative transport options are quickly displacing pipelines as the main source of outbound capacity from key North American resource plays. Please do not edit the piece, ensure that you attribute the author and mention that this article was originally published on FEE.org. False. The thing is that without pipelines (According to Energy & Capital, there are currently no pipelines running internationally between the U.S. and Canada), trains are the best way to move the oil south to the big refineries along the Gulf coasts. Buffett is also a major player in the railroad side of oil-by-rail. Burlington's outlook highlights the fact that rail transport has quickly gained competitiveness against pipelines. Union Pacific (UNP) recorded a 265% increase in sand shipments for fracking in the last two years. Warren Buffett owns the railroad that is now transporting all that oil. So score one for Reuters for setting the record straight (and correctly spelling Buffetts name). The company is no stranger to using rail, having already purchased some 2,000 general purpose railcars to transport domesticoil to its refineries. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); A nonprofit, independent media organization dedicated to telling stories of climate solutions and a just future. Railroads displacing pipelines in Bakken As the biggest rail-car shipper in the Bakken, Burlington Northern continues to enjoy high demand for crude oil shipments, which more than offset declines in coal shipment volumes. Railroads helped fill this gap. The U.S. is also still poised to import record amounts of Canadian oil in the coming years, and several of the lines carrying that crude are in the midst of expansions (more detail on these in a Reuters report here ). See here for a complete list of exchanges and delays. Among the most difficult challenges facing us in 2009 arrives in November, when we exchange Railway Labor Act Section 6 notices with the carriers the list of each sides demands for the next collective bargaining round. BNSF, for example, is 46 percent owned by Wall Street investment funds. Scholars at Carnegie Mellon University and the University of Pittsburgh also found that locomotive transport causes twice as much pollution as pipelines. Crude by Rail: The New Logistics of Tight Oil and Oil Sands Growth. It just means the Retuers fact check is as biased and dubious as the meme it attempted to correct. Nevertheless, it was shared enough that it captured the attention of Reuters, who fact-checked the meme. They claim that railways owned by Buffett now stand to benefit from transporting the oil that the Keystone XL Pipeline would have carried. Since moving crude by pipeline is less expensive than moving by rail, the addition of new pipeline capacity should contribute to the peaking of crude by rail movements at around 10 percent of total North American production. Warren Buffet donated 58 million to Biden campaign. He holds an undergraduate degree from the Universidad Rafael Urdaneta in Venezuela and a graduate degree in communication from the University of Calgary. AUG. 2016: DOT issues a rule requiring thermal protection blankets per the FAST Act, but not requiring that they be as effective as the AAR had requested or manufacturers currently make. 2015: PHMSA issues a Safety Advisory on emergency response information; FRA issues an Emergency Order on maximum speeds for CBR moving through certain highly populated areas; and FRA issues a Safety Advisory on brake and mechanical inspections for trains moving crude. A historic look (1982-2018) at the transportation prevalence of pipelines, marine vessels, rail and truck for oil transport is visible here . Get freight rail industry news right to your inbox, from important policy updates to fun facts about Americas private, nearly 140,000-mile network. From The Washington Post: Buffett said during aCNBC interviewMonday he thought the controversial project was a good idea for the country.. However, uncertainty surrounds the outlook for crude-by-rail volumes in North America. Unfortunately, from here Reuters fact check goes off the rails. Twitter, Follow us on Berkshire Hathaway did not respond to Reuters request for comment on possible gains from Keystone XLs cancellation. PADD = Petroleum Administration for Defense District. The horrible truth is train transport is far more dangerous, energy writer Brian Westenhaus has pointed out. Those measures include announced plans to phase out 72,000 U.S. Department of Transportation 111 (DOT-111) tank carsthe workhorse of the North American tank car fleetin favor of the CPC-1232 (TP14877 in Canada) car design. In August 2014, shipments of crude oil departing North Dakota by railroad averaged 765,000 bbl/d. Design and build by Upstatement. Essentially, improved efficiency is good for consumers and for an economy as a whole, but it can be harmful to less efficient competitors. This means rail is more economical than pipeline. 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