Data: Oil Trains Spill More Often, But Pipelines Spill Bigger

Data: Oil Trains Spill More Often, But Pipelines Spill Bigger
http://thinkprogress.org/climate/2015/02/18/3624116/how-would-you-like-y...
Quote:
"A lot of people have used this data to argue that transporting oil via pipelines is safer than rail. And that’s true, if your idea of safety is defined by the frequency of accidents, regardless of how large the accidents are. If, however, you think massive releases of oil into the environment pose a greater risk to human health, than pipelines are the greater evil."
And this:
"According to the same PHMSA dataset, compiled and analysed by the International Energy Agency, U.S. pipelines spilled three times as much crude oil as trains over that eight-year period, even though incidents happened much less frequently. And that eight-year period was dominated by large pipeline spill events, including one that saw 800,000 gallons of Canadian tar sands crude spill in and around the Kalamazoo River, and another 63,000 gallon pipeline spill into the Yellowstone River."

Swanton Nexus CORN meeting coverage:
http://www.13abc.com/home/headlines/Rallying-to-re-route-a-Nexus-pipelin...

http://www.13abc.com/home/headlines/Local-residents-fight-back-against-p...

http://www.toledonewsnow.com/story/28681912/wood-co-residents-meet-to-di...

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Oil and Gas Exploration Groups Are at Risk of Default
http://ieefa.org/oil-and-gas-exploration-groups-are-at-risk-of-default/
Quote:
Many Analysts See a Bond Bubble Forming …

U.S. corporate bond issuances hit a record high this month and are on pace to beat 2014 levels, when corporate bond sales totaled $1.5 trillion.

Question: What is this happening?

Answer: Corporate issuers are availing themselves of low interest rates.

Part of the reason corporate debt markets have boomed over the past six years or so is that investors have been searching aggressively for yield, and have been willing to take on more risk—even for deals with near junk-bond ratings—to get far better returns than they’d realize, on say, Treasury bonds.

Many analysts see a bond bubble forming, however, and these concerns may be especially justified for bonds issued for oil and gas projects. Oil and gas industry debt has increased by more than 50 percent over the last five years, and, according to Bloomberg News, U.S. oil and gas exploration and production firms have issued approximately 17 percent of all junk bonds on the market.

The oil-and-gas segment of the debt market is at risk today because of the 50 percent drop in oil prices over the past year (from almost $100 a barrel last summer to about $50 today), a drop that has had two big effects on the financial stability of companies:

It has substantially reduced the valuation of assets, which will likely reduce net earnings and potentially lead to downgrades that affect ability to borrow and ability to pay debts.
It has undermined project economics for companies that have issued debt with the assumption that oil and gas exploration and production firms need a rising market in which $80-a-barrel oil (compared to $50 today) is supportable over a reasonable time horizon. Put another way, with prices as low as they are today, U.S. oil and gas companies that sold bonds to finance capital expenditures have less revenue and less cash on hand now to repay debt.

All this raises the short-term risk of default or bankruptcy, either of which would be bad news for bondholders. By some estimates reported by major news organizations, as much as $200 billion in oil and gas exploration debt may be at risk of default.

Concrete signs have begun to appear that all is not well. In January, WBH Energy, a Texas-based company, drew headlines for filing bankruptcy, and Reuters said WBH “may be the first U.S. oil company to do so since crude prices started tumbling six months ago.” Another similar Texas company may be in trouble: Sabin Oil & Gas, according to recent published reports, saw the value of its bonds plunge from above par in September to 49 cents on the dollar.

Statements made are the opinion of the writer who is exercising his first amendment right to freedom of speech. Freedom of speech in the United States is protected by the First Amendment to the United States Constitution and are generally permitted.

NW OHIO JOURNAL Nexus Pipeline Aired: 04/02/2015 The recent proposals for numerous pipelines to move the gas has created some controversy. Here to talk about their concerns are Liz Athaide-Victor of the Coalition to Reroute Nexus (corn), Swan Creek Township Trustee Rick Kazmierczak and Fulton county resident Walter Lange. http://video.wbgu.org/video/2365457361

Statements made are the opinion of the writer who is exercising his first amendment right to freedom of speech. Freedom of speech in the United States is protected by the First Amendment to the United States Constitution and are generally permitted.

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