Crude-By-Rail Slowed by a Red Signal

With many oil pipelines stalled due to popular opposition and/or regulatory hurdles (e.g. Keystone XL and Northern Gateway, or even refineries opting for more flexibility) there seemed to be no end to the growth in moving oil by rail...until now.

2 minute read

December 12, 2013, 7:00 AM PST

By Irvin Dawid


Alison Sider writes that companies hoping to build rail terminals in Washington state capable of receiving the vast oil trains, also referred to as crude by rail or CBR, originating from the booming oil fields in the Bakken formation of North Dakota, are also encountering opposition.

The terminals are necessary to ship or barge the oil to refineries in Washington, Oregon, California and elsewhere, "(b)ut getting a permit in Washington is proving more challenging than companies expected." The "Lac Mégantic" effect is playing a role.

"The whole enterprise raises serious concerns about the heightened risk of transporting crude by rail," said Devorah Ancel, a staff attorney for the Sierra Club, an environmental advocacy group that has opposed some of the crude-by-rail projects at Washington ports.

There are economic advantages to building rail terminals in Washington state for receiving oil from North Dakota, now the second largest oil-producing state after Texas, producing over 1 million barrels a day (which includes neighboring states that compose the Williston Basin). It costs refiners only $10 barrel, "compared with $13 to $16 for a barrel of crude to travel by rail to California and $16 to ship a barrel to the East Coast," writes Sider.

But projects planned for some of the state's ports, where oil would be unloaded from trains, stored in tanks, and transferred to barges, have attracted criticism. A state hearing board recently overruled the City of Hoquiam, southwest of Seattle, which had issued permits to expand two terminals at the Port of Grays Harbor, west of Tacoma, to handle crude.

Pipeline projects that encountered opposition, in addition to Keystone XL, include the Northern Gateway in British Columbia, and the Freedom Pipeline from West Texas to California, which was dropped after California refineries opted to receive crude-by-rail.  

However, the news is not all bad in the oil pipeline business. Keystone XL's southern leg, from Cushing, Okla., to the Gulf Coast at Port Arthur, Tex. will be operational on Jan. 3, reported the Huffington Post on Dec. 3.

Thursday, December 5, 2013 in The Wall Street Journal - Business

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

View of Washington state capitol dome in Olympia, Washington at golden hour.

Washington Legislature Passes Rent Increase Cap

A bill that caps rent increases at 7 percent plus inflation is headed to the governor’s desk.

April 29 - Washington State Standard

Low view of Glendale Narrows section of Los Angeles River with concrete bottom and cloudy storm sky over head.

From Planning to Action: How LA County Is Rethinking Climate Resilience

Chief Sustainability Officer Rita Kampalath outlines the County’s shift from planning to implementation in its climate resilience efforts, emphasizing cross-departmental coordination, updated recovery strategies, and the need for flexible funding.

April 29 - The Planning Report

Grandparents sitting on bench with young girl and boy, girl holding ball and boy holding ukelele.

New Mexico Aging Department Commits to Helping Seniors Age ‘In Place’ and ‘Autonomously’ in New Draft Plan

As New Mexico’s population of seniors continues to grow, the state’s aging department is proposing expanded initiatives to help seniors maintain their autonomy while also supporting family caregivers.

April 29 - Source NM