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"The rail building flurry has already begun and hopes to be at a 1-million-barrel capacity this year."

The statistical chance of a serious accident with a train load of rail cars full of oil is a magnitude higher than from a pipeline. More trains hauling oil just increases those odds. Rail is also far more expensive than pipelines and should probably be used only as a stopgap until the pipelines can be built.

I posted a link on the subject recently, I'll see if I can find it.


Not the one I was looking for this will do.

Oil industry beats Buffett in railroad investments surge

Posted on January 14, 2013 at 6:59 am by Bloomberg in Oil

North American energy companies are starting to invest more in railroad terminals than the railroads themselves.

A group of oil and gas pipeline operators led by Plains All American Pipeline LP (PAA) announced plans just in the past three months to spend about $1 billion on rail depot projects to help move more crude from inland fields to refineries on the coasts. Warren Buffett’s Burlington Northern Santa Fe LLC, the largest U.S. railroad, spent $400 million on terminals in 2012.


Spills are a bigger risk with trains than pipes, according to the Manhattan Institute, a New York-based policy research organization. A U.S. railway is about 34 times more likely to spill hazardous materials, including oil, than a pipeline transporting the same volume an identical distance, according to the Institute’s June analysis of data from the U.S. Transportation Department and the Pipeline and Hazardous Materials Safety Administration.

Railroads have an accident rate just two to three times higher than pipelines, Patti Reilly, a spokeswoman for the American Association of Railroads trade group, said in an interview. Railroad spills tend to involve smaller amounts in each incident, since trains carry far smaller amounts of oil than pipelines, she said.

From your own link:

The U.S. State Department found that, when moving liquids, trains have a death rate three times higher than pipelines and a fire or explosion rate nine times higher. The U.S. Pipeline and Hazardous Materials Safety Administration says that over all, pipelines beat other modes of transportation on all facets of their safety record.
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