The Alaska Pipeline was an amazing feat of engineering capable of 2.18 million bpd of oil. But these days, North Dakota is moving more oil by rail car than Alaska is moving through the pipeline:
Currently, half of all oil coming out of the Bakken shale is transported by railroad (more than the third by pipelines). In its Draft Assessment of the Keystone XL Pipeline, the U.S. State Department estimates that by the end of this year 800,000 barrels per day (bpd) of oil will be carried out of the Bakken on rail cars. …
For a frame of reference, the 800-mile long Trans-Alaskan Pipeline has a maximum capacity of 2.18 million bpd. In other words, by 2016, the United States could be moving more oil by rail than the entire Trans-Alaskan pipeline.
Even today, more oil is moved out of the Bakken Shale on rail than out of the North Slope via pipeline: the volume of oil transported by the pipeline was around 600,000 bpd in 2012 – down from its peak of just over 2 million bpd in 1988.
That’s great news for the rail industry, but not so great news for the State of North Dakota or oil producers. The federal government’s logjam on approving pipeline infrastructure, particularly the Keystone XL pipeline, has intensified this explosion of rail shipments (and, to a less degree, truck shipments).
Given that both rail and truck are inherently more risky in pipelines both in terms of threats to the environment and public safety (as those in Quebec have learned), this isn’t a positive.
President Obama is pushing North Dakota onto riskier forms of oil transport to satisfy the whims of the environmental mob, something that became especially clear when a less-notorious Canadian pipeline project got approval earlier this week in a fraction of the time it’s taken Keystone to win approval (something for which the clock is still ticking).