CRUDE BY RAIL IN THE WESTERN UNITED STATES
U.S. Oil By Rail Boosts Economy,
Independence
The following opinion editorial was originally published by Catalyst, PLAN
Washington’s online magazine, on July 9, 2014.
In less than a decade, the United States is
expected to be energy self-sufficient – no longer
dependent on oil and natural gas supplied by
often unfriendly foreign countries to keep our
economy growing and our people in motion.
Energy independence has enormous
implications for the United States for
geopolitical relations, energy costs for
businesses and consumers, renewed
manufacturing and, perhaps most important,
stability in our transportation fuel markets.
Public Safety Remains
Priority Number One For
Petroleum Industry
The petroleum industry is
going above and beyond
Federal mandates to uphold
and improve upon our
excellent safety record in the
Western United States.
Find out more about
crude by rail standards by
visiting wspa.org.
Businesses and consumers located on the West
Coast are benefiting from the nation’s energy
renaissance by increased transport of crude oil
in rail cars. Washington State is the gateway
for the Midwest’s oil producing regions and
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Annual Billions of Barrels
To move away from
dependency on foreign oil, we
must grow our domestic crude
oil transport infrastructure.
This requires exhaustive and
detailed planning to ensure
public safety.
The energy renaissance we are experiencing is
the result of increased domestic production of
oil and natural gas in the middle regions of the
United States, in places like North Dakota and
Texas where directional drilling and hydraulic
fracturing have tapped into huge new sources of
energy.
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Saudi Arabia
Canada
Ecuador
Iraq
Columbia
The top five nations importing crude oil into the Western U.S. in 2013
Western States Petroleum Association // wspa.org // @wspaprez
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Overwhelmingly,
people
understand
crude oil can
be transported
safely by rail.”
WSPA President Catherine
Reheis-Boyd
Vancouver, Washington is the closest West Coast
port to the vast Bakken Shale oil deposits in
North Dakota.
Increased production of North American oil
is replacing oil we would otherwise have to
import, often from governments with little
regard for U.S. interests. In 2013, Iraq and Russia
accounted for 16 percent or 181,000 barrels per
day of crude oil imported to the West Coast. The
ongoing upheaval in Iraq and turmoil in Russia
and the Ukraine clearly illustrate the problems
inherent in relying on these and other foreign
oil sources.
Domestic Crude and Growing U.S.
Energy Independence
Between 2011 and 2013, imports of foreign crude
oil into the West Coast of the United States fell
by nearly eight percent or 33.5 million barrels.
Increased transports of crude oil by rail will
replace even more of the foreign oil we will need
to import in the future.
But to fully realize the benefits of this hopeful
new supply of domestic energy, the oil
produced in the middle regions of the country
must find their way to West Coast refineries.
And that means we must ensure the existing
infrastructure to transport and receive rail
shipments of crude oil is maintained and new
infrastructure created where needed.
Refineries up and down the West Coast – from
Los Angeles to Blaine – are receiving increased
shipments of crude oil by rail. In California,
crude oil shipments by rail have grown
significantly and are expected to increase in the
future. Refiners and terminal operators there
are expanding and updating their facilities to
ensure the oil is delivered and handled safely
and efficiently.
Five Refineries, 26,000 Related
Jobs in Washington State
The increased production of North American
crude oil is important to the State of Washington
as well, with its five refineries and 26,000
associated jobs.
At the Port of Vancouver, for example, the
proposed Vancouver Energy Distribution
Terminal will create a modern, state-of-theart facility to handle up to 360,000 barrels of
crude oil by train each day. The crude will be
transferred onto double-hulled ships bound for
West Coast refineries.
That project will create 250 construction jobs
and 120 full-time jobs to operate the facility. The
investment of $150 million to $190 million, with
annual wages and purchase of support services,
lease payments to the Port of Vancouver, and
taxes paid to support schools and other local
and state services, will make the project a major
economic engine.
Of course, safety and environmental protection
are crucial and remain a top priority for the
petroleum industry. Overwhelmingly, people
understand that crude oil can be transported
safely by rail.
What it requires is for government, businesses
and community interests to work together to
ensure the necessary controls are in place.
BNSF, the railroad over whose Class One rail
the crude oil will be delivered, is spending a
record $5 billion this year for improvements to
the tracks, operations and management of its
railway system.
Safety: Lower Speeds, Improved
Braking, More Track Inspections
Specially-equipped trains, including enhanced
tank rail cars, are already safely making their
way through Washington State every day. The
petroleum and railway industries are readily
complying with standards that have ensured
crude oil transport safety nationwide. The
Association of American Railroads has partnered
with the U.S. Department of Transportation to
enhance operating practices for moving crude
oil by rail. These include lowering speeds,
Western States Petroleum Association // wspa.org // @wspaprez
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Domestic Energy
Independence Will
Require New Rail
Transport Strategies
The significantly increased
production of crude oil in North
America brings enormous
opportunity to the West Coast.
With a limited pipeline capacity
available to move that crude to
refining centers, rail transport
has increased.
It is vital that rail transport
safely play a role in this new
oil production that has the
opportunity to greatly benefits
businesses and consumers in
the West.
Specially equipped
trains are already
safely making
their way through
Washington State
every day”
WSPA President Catherine
Reheis-Boyd
improving braking systems, increasing track
inspections, and constantly reevaluating safety
response measures.
Next-Gen Tank Cars; Improved
Standards on Crude Testing,
Loading, Unloading
For its part, the petroleum industry has
voluntarily begun building and implementing
next generation tank cars that exceed Federal
standards. The industry has also developed a
comprehensive, science-based standard for
testing, loading, and unloading of crude oil
shipments to ensure public safety.
Working Closely With Regulators,
Officials
Any new crude oil infrastructure undergoes
intensive public and state regulatory agency
scrutiny by the U.S. Energy Facility Site
Evaluation Council (EFSEC). This process enables
the state to work with all interests to ensure
that the appropriate safety and environmental
protections are in place.
The petroleum industry actively engages
federal, state and local officials to continuously
examine and reexamine regulations governing
our nation’s railroads and the handling of the
many types of hazardous material that move
on those rails every day. Close coordination
with regulators and railway leaders will help
the petroleum industry and safety experts
meet a high standard of safety and ensure the
responsible and efficient transport of crude oil
by rail.
Petroleum Fuel, Products Here For
The Long Haul
It is clear our economy, our state and our nation
will depend on petroleum fuel and products for
many decades to come. The most recent data
from US Energy Information Administration
ranks Washington State as the eighth largest
consumer of jet fuel in the country and overall
consumes more than 139 million barrels of
petroleum in one year.
To meet the demand today, tomorrow, and
long into the future, crude oil transport
infrastructure must be maintained and
modernized on an ongoing basis. Our economy,
Western States Petroleum Association // wspa.org // @wspaprez
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Crude oil transport
will become
an important
asset for our
country’s energy
independence
strategy”
WSPA President Catherine
Reheis-Boyd
businesses, and households throughout Washington State stand to benefit from increased domestic
energy independence, but only if fuels can make their way to refineries all along the West Coast.
Projects like the Vancouver Energy Terminal are designed to meet our demands, but not at the
expense of public safety.
With the appropriate safeguards, in place, crude oil transport will become an important asset for our
country’s energy independence strategy, provide jobs and other economic benefits for our region,
and help enhance the safe operation of oil trains moving through Washington State.
Catherine Reheis-Boyd is President of the Western States Petroleum Association,
which represents the petroleum industry in five western states – Washington,
Oregon, California, Nevada and Arizona.
Western States Petroleum Association // wspa.org // @wspaprez
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