Oil Industry Resists Crude Stabilization and Retrofit of Tank Cars (who cares if we're at risk?)

 

INTERVIEW-Tesoro doesn't expect to add stabilizers to Bakken oil operation

Reuters UK  10/31/14  By Kristen Hays  

(Reuters) - Tesoro Corp doesn't expect to add stabilizers that remove flammable natural gas liquids from crude in North Dakota's prolific Bakken shale, where the company is expanding its pipeline infrastructure, Chief Executive Officer Greg Goff said on Friday.

"That's not something we intend to pursue right now," Goff told Reuters in an interview a day after Tesoro reported third-quarter earnings that beat Wall Street expectations. He said the Texas-based company didn't necessarily see the addition of stabilizers as "something that will need to be done."

North Dakota plans to issue new rules for the treatment of crude on Nov. 13 to address the removal of NGLs before transporting oil to markets.

Producers say existing equipment, so-called "heater-treaters" that remove some NGLs, are sufficient and could satisfy new standards with some changes. Stabilizers, common in Texas to remove NGLs to ensure crude is safe for pipeline transport, are more sophisticated and would be costly to build if required.

The issue emerged as regulators consider ways to reduce the volatility of Bakken oil in light of several fiery crude train crashes since mid-2013.

Tesoro operates a refinery in the Bakken and receives up to 50,000 barrels per day of Bakken crude via rail at its Washington State refinery.....   read more here

New Oil Train Safety Rules Divide Rail Industry

Many railroad companies want more time to retrofit cars in the U.S. and Canada, but some are forging ahead.

October 31, 2014      Joe Eaton   for National Geographic