Study: Bakken Crude Safe for Rail Transport

The North Dakota Petroleum Council is set to release a study later this month adding to the number of industry voices concluding that Bakken crude oil is safe to move by rail because it is no more flammable than other crude grades.

The study will show that Bakken crude is not more flammable or volatile during rail transportation than benchmark West Texas Intermediate, Kari Cutting, vice president of the council, said on Thursday during the Crude Oil Quality Association conference in Denver.

The council represents more than 500 companies in the oil and gas industry.

In the past year, fiery derailments of trains carrying Bakken crude have come under scrutiny. A train jumped the tracks and then burst into flames in Lynchburg, Virginia, on April 30. Last June, a train exploded in the center of Lac-Megantic, Quebec, and killed 47 people.

Two industry-funded studies have concluded that Bakken fuel can be safely transported by standard tank cars, and is not a flammable gas, requiring costlier, heavier cars for transport. The studies have drawn criticism, with senators including Charles Schumer, Democrat of New York, saying they need further review.

The council's study will add to the research suggesting that Bakken crude is a consistent, reliable grade of oil. There was no evidence of "spiking," or adding light ends to any of the study's 150 samples taken during March and April, Cutting said. Some industry players believe that adding lighter crude components to Bakken oil has made the rail car shipments more prone to explosions.

The study will also show that Bakken has a "consistent quality" and has an average American Petroleum Institute gravity of 41, consistent with the definition of light crude oil.

The council is also establishing a new Bakken crude oil benchmark because multiple benchmarks are emerging for the crude. That benchmark will be launched by the end of the summer. The council said it will decide upon specifics, such as where the benchmark will be launched, after the study is released.

By Catherine Ngai