Pipelle Transportation: Transportation Safety: Crude Oil Transportation

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POLICY ISSUES Transportation Safety Crude oil transportation can have many important safety implications across those modes that can carry it, Pipeline, Rail, Boat, and Truck. Transporting crude oil can be very dangerous. Currently, pipelines account for 70% of crude oil transportation, followed by 23% on marine barges and tankers, 4% by truck, and 3% by rail. However, with the rise in production of crude oil, rail transportation has seen a rise in usage, due to the ability to carry larger volumes (5). Between 2011 and 2012, rail transportation saw a 423% increase in transportation usage, by volume transported (2). Pipeline transportation is the most cost-effective means of transportation. Rail tank cars can carry approximately 700 barrels of crude oil, which means a "train of 100 cars could carry …show more content…

Currently, based on NASDAQ closing prices on October 16 the price of (WTI) crude oil was $47.26/bbl (1). Based on the "economic theory of international trade", ending the oil embargo by adding US oil exports to the world market, the price of oil would be pushed more towards the world price. Therefore an increase in world supply and demand would have an effect on the price of oil. In this case, an increase in supply, all else equal, would result in an decrease in the world price. However, with an increased supply, it is possible that demand for crude oil would increase, which would result in an increase in the price of oil (2). By lifting the ban on exporting crude oil, there would likely be an increase in the U.S. price of crude oil, but there would be a decrease in the world price of crude oil, due to increased competition (6). However, it is not likely that the effects on the price of oil would be great. An increase in the world supply of crude oil, would bring "price stability", which would have an important role should there be any future supply scares

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