World Energy News

Residents Flee South Texas Ahead of Harvey

Residents fleeing most powerful storm on U.S. mainland since 2005. Businesses closed and lines of cars streamed out of coastal Texas as officials called for residents to evacuate ahead of Hurricane Harvey, expected to arrive about midnight as the most powerful storm to hit the U.S. mainland in more than a decade. The hurricane is forecast to slam first near Corpus Christi…

Trump Win Boosts Coal, Hits Renewable Stocks

The prospect of an abrupt shift in U.S. climate policy under President-elect Donald Trump lifted the shares of U.S. mining equipment giant Caterpillar Inc, North American railroads and other companies tied to fossil fuels, and slammed shares of renewable energy firms. Trump has called climate change a hoax, said he would rip up the Paris climate treaty and promised to revive the U.S. coal sector.

Union Pacific CEO Say 2016 Freight Volumes Could Fall

Full-year 2016 freight volumes at Union Pacific could fall between 6 percent and 8 percent versus 2015, driven by declining coal volumes, weak shale oil business and the strong U.S. dollar, the company's top executive said on Thursday. Chief Executive Lance Fritz told Reuters a "not very robust" showing by U.S. consumers would also hurt freight.

Union Pacific Profit Falls, Pressure on Freight Continues

Union Pacific Corp on Thursday reported a lower quarterly net profit that was hurt by falling freight volumes, especially coal, and warned the strong U.S. dollar, soft global economy and weak consumer demand would keep weighing on the No. 1 U.S. railroad's business in the second half of 2016. The company's shares fell more than 3 percent after the announcement. The Omaha…

Cleanup Underway after Oregon Oil Train Derails

Most of the cars from a Union Pacific train carrying crude oil that derailed and burst into flames in Oregon on Friday have been removed and the remaining oil will be hauled away on flatbed trucks, a spokesman for the company said on Sunday. A total of 16 cars of the 96-car train derailed, up from the company's previous report of 11 derailed cars, Union Pacific spokesman Justin Jacobs said. Thirteen train cars remained on site.

U.S. Rail Freight Falls as Coal Declines

Freight carried by major U.S. railroads fell by 7 percent in the second quarter of 2015 compared with the same period in 2014, confirming that large parts of the industrial economy are in recession. The major Class 1 railroads carried 431 billion ton-miles of freight in the three months ending June, down from 463 billion ton-miles in 2014, according to the U.S. Surface Transportation Board .

Hurricane Patricia Brings Rain, Flooding to Louisiana

Torrential rainstorms battered Louisiana on Sunday, leaving thousands without power, after pounding southeastern Texas as the remnants of Hurricane Patricia converged with a second storm. The heaviest band of rain moved over the Gulf of Mexico, triggering coastal flood warnings and flash flood watches in southwest Louisiana and soaking New Orleans, according to the National Weather Service (NWS).

No Retrofit Bonanza for Tank Car Makers

When U.S. regulators adopted new rules last May to make hauling crude by rail safer, shippers anticipated relatively moderate costs and adjustments while rail tank car makers geared up for a retrofitting bonanza. It has not worked out that way. Months later, oil companies are learning that meeting the new standards is more expensive and complicated than they thought while tank car producers have yet to see the windfall from the fleet's overhaul.

As Coal Wanes, Consumers Key for U.S. Rails

Investors in U.S. railroad stocks, who have been punished in 2015 by an accelerating decline in high-margin coal shipments, now are pinning their long-term hopes on a resurgence in consumer spending. Their bet is that a strengthening economy will produce enough demand that railroads will be able to replace the income lost to years of declining coal use with so-called intermodal shipping - the movement of containers stuffed with clothing…

Hundreds of Rail Tank Cars Now Idle

Amid the rolling mountains surrounding this quiet town in southwest New York state, tucked away on miles-long stretches of underused rail tracks, hundreds of idle oil tank cars attest to the extent of fallout from oil's rout. The oil tank cars - a year ago sought-after to haul crude from North Dakota to New Jersey - now stand idle as a result of two converging trends: the reversal in U.S. shale oil production and the completion of new pipelines.

Union Pacific Profit Down on Waning Coal Volumes

No. 1 U.S. railroad Union Pacific Corp on Thursday reported a lower quarterly net profit due to a 6 percent drop in freight volumes led by a sharp decline in coal shipments. The Omaha, Nebraska-based company reported second-quarter net income of $1.2 billion or $1.38 per share, down 8 percent from $1.3 billion or $1.43 per share a year earlier. Analysts had expected earnings per share for the quarter of $1.35. (Reporting By Nick Carey

Train Lobby Pushes to Weaken Safety Rule

Billionaire investor Warren Buffett is set to be a chief beneficiary of a bid by Senate Republicans to weaken new regulations to improve train safety in the $2.8 billion crude-by-rail industry, a key cog in the development of the vast North American shale oil fields. A series of oil train accidents, including the July 2013 explosion of a train carrying crude in Lac-Megantic, Quebec, that killed 47 people, led U.S.

California Apposition to Oil-by-rail Mounts

A chorus of local governments across California opposed to crude oil trains grew louder this week in light of recent derailments, with a total of 14 cities and towns now trying to block the trains from running through their communities. Five northern California cities - Berkeley, Richmond, Oakland, Martinez and Davis - have voiced their opposition to crude by rail in general.

Driver Shortage Makes Capitalizing on Low Oil Hard for Truckers

A chronic shortage of drivers means America's long-haul trucking companies are struggling to capitalize on cheap fuel prices that could allow them to take goods shipments away from railroads. A 50 percent fall in oil prices from their peak last year should have erased some of the cost advantage railroads enjoy, especially for longer hauls. But for customers hoping to save money by switching from train to truck, the lack of drivers makes that harder.

U.S. Silica Announces O&G Capacity Expansions

U.S. Silica Holdings, Inc. announced plans to add approximately 3.8 million tons of new capacity in response to the surging demand for northern white frac sand. The company is planning an 800 thousand ton-per-year expansion at its Pacific, Mo. plant. The decision to expand the Pacific plant was driven primarily by the oil and gas market's increased use of fine grade products.

Rail Takes a Fresh Look at Gas

Gas-fueled locomotives are not a new idea. Plymouth Locomotive Company built the first propane-fuelled rail engine as early as 1936. The industry has experimented with natural gas-fueled trains on a small scale for the past 80 years without ever moving beyond the prototype stage. "Some members of the regulatory, engine supply and fuel supply communities believe railroads…

Union Pacific Line Back in Service After Derailment

U.S. railroad company Union Pacific Corp said on Monday that a rail line on which a train derailed in northern Colorado was back in service. The line, which is used about once a day, connects Windsor, which is in the Niobrara shale play in northeastern Colorado, as well as other towns in the state. The train, which was heading from Windsor to an East Coast destination, spilled 5,300 gallons of oil on Friday morning.

Union Pacific Line Back in Service after Derailment