While many California were protesting oil trains carrying the hazardous Bakken crude, a funny thing happened—they stopped coming. While protests may have delayed the construction of new oil terminals, economics is at the root of the slowdown.
"Although tank cars full of oil now roll daily through cities in the Midwest and East, provoking fears of crashes and fires, the number of oil trains entering California has remained surprisingly low, state safety regulators say, no more than a handful a month," writes transportation reporter Tony Bizjak for The Sacramento Bee. "In recent weeks, they appear to have dwindled to almost nothing."
“Crude oil shipments from out of state have virtually stopped,” said Paul King, rail safety chief at the California Public Utilities Commission (CPUC). “Our information is that no crude oil trains are expected for the rest of this month.”
It would appear that as with fracking, California's crude-by-rail opponents have Saudi Arabia to thank for the dramatic reduction in oil prices, more specifically, for their decision not to reduce their oil output, resulting in oil prices taking oil prices in a tailspin.
California Energy Commission fuels specialist Gordon Schremp said lower prices for other types of oil have made Bakken marginally less marketable in California, although that could easily change in the future.
Indeed, the reprieve may be short term if one is to believe some of the forecasts resulting from dramatic build-up in crude oil supplies in the United States, particularly in Cushing, Okla., that could cause a domestic price collapse to as low as $20 per barrel according to Citigroup's Ed Morse, reported The Associated Press on March 3.
"(S)upplies haven't been this high since 1930, reported The Wall Street Journal on Wednesday. "If storage tanks were to fill up, prices would plummet as producers sought homes for their crude," writes energy markets reporter Nicole Friedman. Should that happen, the benchmark price difference between domestic oil from the Midwest and imported oil might be too much for California refineries to ignore.
FULL STORY: Crude oil train shipments dwindle in California, for now
Pennsylvania Mall Conversion Bill Passes House
If passed, the bill would promote the adaptive reuse of defunct commercial buildings.
World's Largest Wildlife Overpass In the Works in Los Angeles County
Caltrans will soon close half of the 101 Freeway in order to continue construction of the Wallis Annenberg Wildlife Crossing near Agoura Hills in Los Angeles County.
U.S. Supreme Court: California's Impact Fees May Violate Takings Clause
A California property owner took El Dorado County to state court after paying a traffic impact fee he felt was exorbitant. He lost in trial court, appellate court, and the California Supreme Court denied review. Then the U.S. Supreme Court acted.
California Grid Runs on 100% Renewable Energy for Over 9 Hours
The state’s energy grid was entirely powered by clean energy for some portion of the day on 37 out of the last 45 days.
New Forecasting Tool Aims to Reduce Heat-Related Deaths
Two federal agencies launched a new, easy-to-use, color-coded heat warning system that combines meteorological and medical risk factors.
AI Traffic Management Comes to Dallas-Fort Worth
Several Texas cities are using an AI-powered platform called NoTraffic to help manage traffic signals to increase safety and improve traffic flow.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
Tufts University, Department of Urban and Environmental Policy & Planning
City of Universal City TX
ULI Northwest Arkansas
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.