Oil
Oil trains raise concerns in small towns, cities
WASHINGTON — It’s tough to miss the trains hauling crude oil out of the Northern Plains. They are growing more frequent by the day, mile-long processions of black tank cars that rumble through wheat fields and towns, along rivers and national parks.
As common as they have become across the U.S. and Canada, officials in dozens of towns and cities where the oil trains travel say they are concerned with the possibility of a major derailment, spill or explosion, while their level of preparation varies widely.
Stoking those fears was the July crash of a crude train from the Bakken oil patch in Lac Megantic, Quebec — not far from the Maine border — that killed 47 people. A Nov. 8 train derailment in rural Alabama where several oil cars exploded reinforced them.
“It’s a grave concern,” said Dan Sietsema, the emergency coordinator in northeastern Montana’s Roosevelt County, where oil trains now pass regularly through the county seat of Wolf Point. “It has the ability to wipe out a town like Wolf Point.”
The number of carloads hauled by U.S. railroads has surged in recent years, from 10,840 in 2009 to a projected 400,000 this year.
Despite the increase, the rate of accidents has stayed relatively steady. An Associated Press review of federal hazardous material accident records show most of those incidents involved small quantities of oil.
Railroads say 99.997 percent of hazardous materials shipments reach destinations safely. Representatives said they work hard to prevent accidents and make sure emergency responders are prepared, by training about 20,000 firefighters and others annually.
“It’s not something to be afraid of,” said Union Pacific CEO Jack Koraleski. He said there isn’t a safer option than rail.
Federal officials who oversee railroads said they’ve responded to the boom in oil trains by beefing up rail car inspections in oil-producing states such as North Dakota. Tougher safety standards are being considered for the tank cars that carry oil.
But the accident records kept by the U.S. Department of Transportation point to the daunting size of that task. Oil trains are now active in virtually every corner of the country, and since 2008, crude releases from rail cars have been reported in 29 states.
The potential for a major accident looms ominously for emergency officials. Urban areas and towns near railroad facilities are better prepared, while rural officials know they may be on their own in the first crucial hours after an accident.
New Castle County, Del., has extensive resources and well-trained firefighters because it is home to an oil refinery and a complex of chemical manufacturing plants.
County emergency management coordinator Dave Carpenter said the industry has worked closely with officials to improve emergency response since an incident in 1984, so he’s not especially concerned about the crude oil shipments.
“We’re probably one of the more-prepared places in the nation,” Carpenter said.
But even in another relatively well-equipped area, like Little Rock, Ark., Pulaski County emergency manager Andy Traffanstedt said he worries that a fiery accident like the one in Quebec could overwhelm firefighters.
“Sometimes things are so catastrophic that you can’t ever get ahead of it,” he said, even though his county has three hazardous materials teams and a Union Pacific rail yard with more resources nearby.
Trains headed west out of the Bakken oil patch in North Dakota snake their way along the Missouri River and slice through towns large and small before crawling over the Continental Divide at Glacier National Park to reach coastal refineries.
Like spokes on a wheel, others head south to the Gulf, east to New York and Pennsylvania, north into Canada.
One of the first places trains heading west pass through is Wolf Point, an agricultural town of about 2,600 people on the Fort Peck Indian Reservation.
On a line historically dominated by grain and freight shipments, crude trains are now a daily sight. Horns announce their approach as locomotives pulling 3 million gallons of crude per shipment pass just a block from the town’s business district and only yards from the public high school.
Emergency officials in Montana and beyond generally praised the railroad industry’s responsiveness to derailments.
Burlington Northern Santa Fe Railway, the dominant railroad in the Bakken, maintains its own hazardous materials emergency crews, totaling more than 220 personnel at 66 sites scattered across the country. The other major railroads take similar precautions and offer specialized training to local firefighters.
Yet corporate responsibility can only do so much, said Sietsema, who noted that the last significant derailment in his county came when a freight train hit a truck at a road crossing.
“Burlington Northern is pretty much Johnny on the spot,” he said. “But BN can only control so much.”
Like most rural communities, Wolf Point has an all-volunteer fire department. The nearest hazardous materials teams are stationed on the other side of the state, six to eight hours away. There’s no containment boom on hand if oil entered one of the Missouri River tributaries crossed by the rail line.
As for controlling an oil-fueled fire, Wolf Point’s fire department would use up its supply of specialized foam in a matter of minutes, said Chris Dschaak, Wolf Point’s mayor-elect and also secretary-treasurer of the local fire department.
Similar limitations exist for fire departments across the U.S., said Alan Finklestein, a fire marshal in Ohio who conducts hazardous materials training for government agencies and first responders.
He said the problem has been compounded by cutbacks in emergency personnel and training in recent years due to the ailing economy.
Greg Rhoads, a railroad emergency preparedness consultant and former CSX employee, said knowing what rail traffic is passing through a community and understanding the potential risks is crucial to being prepared.
Rhoads said he doesn’t think any community could handle a disaster like the one that unfolded in Quebec last July, but every fire department, even small ones, can do some things to prepare and develop a basic plan.
“If you have 10, 15, 20 railcars on fire, it would challenge Denver, Chicago or any major fire department,” Rhoads said.
Oil
FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
Business
Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
Oil
ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.