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Oil companies turn to trains instead of Enbridge’s leaky pipes

Oil companies turn to trains instead of Enbridge’s leaky pipes

electroburger

Enbridge — the Canadian company responsible for the worst onshore oil spill in American history when a pipe near Kalamazoo, Mich., ruptured in 2010 —  is suffering from oil companies’ newfound fondness for rail.

From Bloomberg:

Enbridge Inc.’s North Dakota pipeline system has been underused for the past three months as railroads move more oil out of the Bakken shale play, a refining company told U.S. regulators. …

Railways have emerged as a competitor to pipelines as production from shale fields has grown faster than pipeline space. While rail is typically more expensive than pipelines, railcars can reach markets that pipelines don’t, yielding higher prices for producers.

How big is the capacity difference?

The largest oil rail-car shipper in the Bakken is Burlington Northern Santa Fe LLC, owned by Warren Buffett’s Berkshire Hathaway Inc. The company plans to boost its crude-oil shipments by 40 percent to 700,000 barrels a day by the end of this year, Chief Executive Matt Rose told Bloomberg in a phone interview this month.

Enbridge’s North Dakota system can transport 210,000 barrels a day from Minot to Clearbrook, Minnesota, according to the company’s website.

That’s a difference of half a million barrels. Even if Enbridge’s plans to expand its pipeline system go through, it won’t be enough to meet demand.

A possible other factor: I read somewhere that Enbridge was responsible for the largest onshore oil spill in American history. One of the primary considerations of oil companies when deciding how to ship their oil is almost certainly confidence that the oil will get where it’s supposed to go, and not end up in a river somewhere. It is hard to sell river oil, Enbridge! You should write that down.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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North Frackota’s population boom means more young men — and more problems

North Frackota’s population boom means more young men — and more problems

Huffington Post

Click to embiggen.

Last year, the North Dakota division of tourism unveiled an ad as part of a series that it hoped would lure people to the state. “Drinks, dinner, decisions,” the ad copy read. “Arrive a guest. Leave a legend.” Reaction to the ad (which you can see at right) was fast and strongly negative. The image of two men leering out a window at a group of women in short skirts struck many as sexist, tone-deaf, and worse.

It turns out that the ad’s subtext may have been more accurate than we knew. From the Times:

At work, at housing camps and in bars and restaurants, men have been left to mingle with their own. High heels and skirts are as rare around here as veggie burgers. Some men liken the environment to the military or prison.

“It’s bad, dude,” said Jon Kenworthy, 22, who moved to Williston from Indiana in early December. “I was talking to my buddy here. I told him I was going to import from Indiana because there’s nothing here.”

This has complicated life for women in the region as well.

Many said they felt unsafe. Several said they could not even shop at the local Walmart without men following them through the store. Girls’ night out usually becomes an exercise in fending off obnoxious, overzealous suitors who often flaunt their newfound wealth.

Reuters / Jim UrquhartOil industry worker Bobby Freestone enjoys a day off at a so-called man camp outside Watford, N.D.

North Dakota is the fastest-growing state in the country. Fracking the Bakken Shale formation for oil has brought thousands and thousands of young men to the state, given them good salaries, crammed them into whatever housing they can find. It has also created a massive imbalance in the number of men to women in some parts of the state — and the men that have arrived are young and bored.

Prosecutors and the police note an increase in crimes against women, including domestic and sexual assaults. “There are people arriving in North Dakota every day from other places around the country who do not respect the people or laws of North Dakota,” said Ariston E. Johnson, the deputy state’s attorney in neighboring McKenzie County, in an e-mail.

Over the past six years, North Dakota has shot from the middle of the pack to become the state with the third-highest ratio of single young men to single young women in the country. In 2011, nearly 58 percent of North Dakota’s unmarried 18-to-34-year-olds were men, according to census data. That disparity was even starker in the three counties where the oil boom is heaviest — there were more than 1.6 young single men for every young single woman.

The Times article includes a graphic showing those states with the highest imbalance of single men to single women. The top five states — Montana, Wyoming, Utah, Oklahoma, and North Dakota — are all among the states with the highest levels of oil and gas exploration.

New York Times

That imbalance is no excuse for sexism, assaults, or harassment. It is, however, another sign of a region strained by a booming fossil fuel industry — a region that receives very little support from that increasingly rich industry to deal with the problems that are created.

Come to North Dakota, a new, more accurate ad might beckon. Instead of being at a bar, it’s in front of a fracking rig, and instead of two guys, it will show six. And it won’t show three young women, but one — with a nervous expression on her face.

Philip Bump writes about the news for Gristmill. He also uses Twitter a whole lot.

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