18 / 32
years earlier. In fact, between 2008, the
year North Dakota’s Crude-By-Rail (CBR)
shipments began in earnest, and 2014, more
than 70 percent of the 1 million-plus barrels
of oil produced in the Bakken region each day
was moved by rail.
IN CANADA, MORE
CRUDE-BY-RAIL TO COME
At about the same time as the North Dakota
drilling rush, rail was also helping develop the
Canadian oil sands. Although the majority
of crude exported from Canada travels via
pipeline, rail cars are well-suited to carry full
heavy crude and undiluted bitumen. Between
2011 and 2013, the amount of Canadian crude
oil exported by rail to the United States rose
from 1.6 million barrels to 40 million barrels.
In the closing of 2015, CBR shipments were
off considerably. But despite the drop – and
the fact that the current low-cost environment
favors pipelines, which cost between $2 and
$22 per barrel less than shipping by rail – CBR
projects remain on the table in Canada.
Similarly, recently completed pipelines
and additional refining capacity in North
Dakota have diminished the proportion of oil
riding the rails out of the Bakken: today, only
about 47 percent of the region’s crude is being
transported by train. Still, that means that
pipeline and rail industries share just about
equal responsibility – at least statistically – for
moving energy from the Bakken and across the
United States and Canada, and doing it safely.
GAUGING SAFETY NOT ALWAYS EASY
Obviously, safety is an obligation neither
industry overlooks, especially since there’s truly
no infallible way of getting oil or gas from
its source to its destination. Recent pipeline
failures in Mayflower, Arkansas, and Refugio,
Texas, are proof of that.
It’s no surprise, however, that as more
oil trains began rolling, closer examination
of rail’s safety statistics skyrocketed. The
scrutiny of industry records was piqued not
just by such high-profile accidents as the
deadly 2013 derailment and crash of a train
carrying Bakken crude that killed 47 people
in Lac Megantic, Quebec. The fact that the
RAILROADS MOVING MORE CRUDE OIL
Originations vs. Terminations, 2005-2014
600k
525k
450k
375k
300k
225k
150k
75k
0
2005
2010
2006
2011
2007
2012
2008
Originated Carloads
Terminated Carloads
2013
2009
2014
"America's freight railroads are supporting the nation's energy renaissance by moving domestic energy resources such as crude oil. In fact,
rail shipments of crude oil have skyrocketed in recent years with railroads originating a record 493,146 carloads in 2014. In light of increased
volumes of crude oil moving by rail, freight railroads have implemented new operational protocols and advocated for stronger tank car design
standards, while federal regulators have issued new regulations to help ensure this important commodity is moved safely." –
AAR
Notes: Data are for U.S. Class I railroads; Source: Association of American Railroads (AAR)
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C O V E R S T O R Y