Railcar Bottleneck Looms for Oil

[hypocritexposer]

Railcar Bottleneck Looms for Oil
Changes Proposed for Tank Cars Could Disrupt Crude, Other Energy Shipments

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...

http://www.wsj.com/articles/railcar-bottleneck-looms-for-oil-1419205911

 

[Faster horses]

On trucks, huh? Where will they get the drivers?

My company just alerted us to the fact that there are 25-30% less drivers than there were in January 2104. This is in part due to government regulations.

This is going to be a problem of HUGE proportions and not just for
delivering oil,

"When you got it, a truck brought it."

 

[katrina]

No kidding. Our son has his CDL and runs commercial tags. The hoops he has to jump through is unbelievable.

 

[mrj]

That will be a tough call for Pres. O. Between wanting to use it to force more 'clean' fuels, cutting out more fossil fuel, AND keeping "the Oracle of Omaha" happy hauling oil in his tanker cars, what to do??????

 

[loomixguy]

That will be a tough call for Pres. O. Between wanting to use it to force more 'clean' fuels, cutting out more fossil fuel, AND keeping "the Oracle of Omaha" happy hauling oil in his tanker cars, what to do??????

He could always resign.

 

[Traveler]

I think Buffet supports Hillary. His usefulness is maybe winding down. This looks more like a plan coming together.

 

[Silver]

I have an idea. How about a pipeline? :shock: :roll:

 

[Faster horses]

I have an idea. How about a pipeline? :shock: :roll:

That just makes too much sense, Silver. Besides (and I quote) "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. "

I betcha he's wrong.......about the pipelines....I can hardly wait til Jan. 6, 2015. I wonder what can be done and how long it will take to undo some of this stuff. Messing with the trucks has CRIPPLED our country and sounds
like it could get worse.

Companies in Gillette, Wy are offering $85,000 to $120,000 for truckers.,
The $120,000 offers are for those with Haz-Mat certification.

 

[Faster horses]

No kidding. Our son has his CDL and runs commercial tags. The hoops he has to jump through is unbelievable.

That is just sad, Katrina. I betcha he could get welfare easier than complying with the regulations
on trucking. Nothing like penalizing those who WANT TO WORK.

 

[katrina]

I have an idea. How about a pipeline? :shock: :roll:

The magic Neagro says the pipeline only benifits Canada.

 

[hypocritexposer]

I have an idea. How about a pipeline? :shock: :roll:

The magic Neagro says the pipeline only benifits Canada.

Should have built it while oil price was higher. Pipelines are being shelved for now.

Would have started it a couple years ago, oil would have been flowing through it already.

 

[Faster horses]

I have an idea. How about a pipeline? :shock: :roll:

The magic Neagro says the pipeline only benifits Canada.

Should have built it while oil price was higher. Pipelines are being shelved for now.

Would have started it a couple years ago, oil would have been flowing through it already.

He needed to see further down the line than the guy standing right in front of him ready to give him money.

 

[iwannabeacowboy]

I have an idea. How about a pipeline? :shock: :roll:

The magic Neagro says the pipeline only benifits Canada.

Should have built it while oil price was higher. Pipelines are being shelved for now.

Would have started it a couple years ago, oil would have been flowing through it already.

How much have those communities lost for the ones still going through? Rod prices drop with the price of oil or they get scrapped.

 

[iwannabeacowboy]

I have an idea. How about a pipeline? :shock: :roll:

That just makes too much sense, Silver. Besides (and I quote) "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. "

I betcha he's wrong.......about the pipelines....I can hardly wait til Jan. 6, 2015. I wonder what can be done and how long it will take to undo some of this stuff. Messing with the trucks has CRIPPLED our country and sounds
like it could get worse.

Companies in Gillette, Wy are offering $85,000 to $120,000 for truckers.,
The $120,000 offers are for those with Haz-Mat certification.

Hope you all are cdl certified or ready to pay for it. Under local law, they're fining producers hauling their own cattle with one tons that aren't cdl certified.

Chocking off transportation should really counter the effects of cheap fuel.

 

[loomixguy]

150 mile rule? No CDL required?