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OIL AND GAS
DOT sued by advocates upset by oil train rules
by Daniel J. Graeber
Washington (UPI) Sep 12, 2014


disclaimer: image is for illustration purposes only

Advocacy groups said they filed a lawsuit against the Department of Transportation for not responding to calls to pull crude oil rail cars out of service.

The Department of Transportation in July published a 200-page proposal calling for the eventual elimination of older rail cars designated DOT 111 used to ship flammable liquids, "including most Bakken crude oil."

The increase in U.S. crude oil production is more than the existing network of pipelines can handle and industry officials say rail is the primary alternative transit method.

DOT-111 rail cars carrying crude oil have been involved in a series of disastrous derailments, including the deadly incident in Lac-Megantic, Quebec in 2013.

Earthjustice, ForestEthics and the Sierra Club filed a lawsuit against the Department of Transportation for not responding to a petition filed in July calling for a ban on shipping Bakken crude using DOT-111 cars.

Matt Krogh, campaign director with ForestEthics, said DOT-111 cars are "tin cans on wheels."

"We can't run the risk of another disaster like Lac-Megantic," Earthjustice attorney Patti Goldman said in a statement Thursday.

U.S. regulators in January issued an advisory warning Bakken crude oil may be more prone to catch fire than other grades.

The North Dakota Petroleum Council in May published a study saying crude oil taken from the Bakken reserve area does not, as the U.S. Department of Transportation suggests, pose a greater risk when transported by rail.

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OIL AND GAS
IEA cuts oil demand outlook on weaker growth in Europe, China
Paris (AFP) Sept 11, 2014
The oil market has lost pace because of weak growth in Europe and slowdown in China, the IEA said on Thursday, cutting its estimates for demand. The growth in demand for oil this year and next will be markedly lower than expected, the IEA said, and this together with plentiful supply explains why the price of oil has fallen recently below $100 per barrel. "The recent slowdown of demand g ... read more


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