Oil tanker building boom underway
Oil companies are rolling ahead of federal regulators to replace old tank cars following a series of fiery accidents involving crude-carrying trains.American Railcar Industries has been building these cars for 150 years and they will probably be pretty busy meeting the demands of the railroads and the oil companies. Union Tank Car Company is owned by Warren Buffet who also owns BNSF Railway Co. Buffet is profiting from Obama's dilatory tactics in approving the Keystone XL pipeline. Without the pipeline rail is being used to get the oil to market, even if it is more dangerous.
Canadian refiner Irving Oil and San Antonio-based Tesoro Corp. have pledged to replace older crude tankers in their fleet, after the aging DOT-111 models built before 2011 were deemed prone to rupture.
Phillips 66 has said all of its crude-carrying tankers meet current standards and San Antonio’s Valero Energy Corp. said all of the railcars it has on order meet newer requirements for the post-2011 models.
Separately, BNSF Railway Co. is reportedly looking to buy up to 5,000 new crude tankers that have thicker walls and other safety features beyond existing industry standards.