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NEW YORK (Reuters) - Warren Buffett, chairman of conglomerate Berkshire Hathaway , said on Wednesday that safety is a major priority for the rail industry, after a recent spate of accidents raised concerns about how to transport oil safely.
"I can tell you that's all they're thinking about," the investor said in an interview with Reuters.
"We're going to move a lot of crude in this country, and we have to learn how to do it very safely," he added.
He added that the delay in the construction of the Keystone pipeline was unlikely to prompt additional purchases of tank cars at Berkshire railroad unit BNSF.
originally posted by: darkbake
a reply to: the owlbear
Good to know your opinion, Owlbear, especially having experience in the field. I have hardly heard of many accidents involving rail, either, I just know it is of concern. It might very well be more dangerous to move by ship or by pipeline.
One thing with a pipeline is that it involves tearing up land to put it in - although I'm not sure what the impact is. Here is a picture of a pipeline in Canada.
While the safety record of railroads has improved in recent years, the surge in oil transportation has meant a spike in spill rates. From 1975 to 2012, federal records show, railroads spilled 800,000 gallons of crude oil. Last year alone, they spilled more than 1.15 million gallons, according to an analyis of data from the Pipeline and Hazardous Materials Safety Administration done by McClatchy Newspapers. That figure includes the Casselton spill, estimated at about 400,000 gallons.
Between 2008 and 2012, U.S. pipelines spilled an average of more than 3.1 million gallons of hazardous liquids per year, according to data from the Pipeline & Hazardous Materials Safety Administration, the nation's pipeline regulator. Those spills -- most commonly caused by corrosion and equipment failure -- caused at least $1.5 billion in property damage altogether.
originally posted by: the owlbear
Not just tearing up the farmland, old friend, the leaks...
Much of the farming done where they are planning the Keystone is right over land that is reliant on center pivot irrigation to grow crops, mainly corn and soybeans. A leak in that line could affect that very groundwater and land that is essential for food production.
Although most of the spills are classified as “small,” the toxicity of crude oil makes even small amounts hazardous to human, animal and plant life, and some spills have been quite large. On September 29, for example, farmer Steven Jensen discovered a six-inch fountain of oil bubbling up from his land and reported a pipeline spill. Investigators determined that a quarter-sized hole in a Tesoro Logistics pipeline had befouled at least seven acres of Jensen’s farm with more than 865,000 gallons/20,600 barrels of oil, making it one of the largest inland oil pipeline accidents in U.S. history.
originally posted by: darkbake
originally posted by: the owlbear
Not just tearing up the farmland, old friend, the leaks...
Much of the farming done where they are planning the Keystone is right over land that is reliant on center pivot irrigation to grow crops, mainly corn and soybeans. A leak in that line could affect that very groundwater and land that is essential for food production.
Okay a question for you - on a pipeline like that, do you know, is it possible if there are leaks all over the place? Like a bit of oil leaking here, and a bit there? That could contaminate the ground and groundwater.