Bakken shale oil

The Secret of the Great American Fracking Bubble

Read time: 8 mins
Natural gas drilling well pad in Wyoming

In 2008, Aubrey McClendon was the highest paid Fortune 500 CEO in America, a title he earned taking home $112 million for running Chesapeake Energy. Later dubbed “The Shale King,” he was at the forefront of the oil and gas industry's next boom, made possible by advances in fracking, which broke open fossil fuels from shale formations around the U.S.

What was McClendon’s secret? Instead of running a company that aimed to sell oil and gas, he was essentially flipping real estate: acquiring leases to drill on land and then reselling them for five to 10 times more, something McClendon explained was a lot more profitable than “trying to produce gas.” But his story may serve as a cautionary tale for an industry that keeps making big promises on borrowed dimes — while its investors begin losing patience, a trend DeSmog will be investigating in an in-depth series over the coming weeks. 

BNSF Nears Shift To One-Member Crews, Possibly Even on Dangerous Oil Trains

Read time: 6 mins

This is a guest post by Cole Stangler.

For decades, the U.S. railroad industry has successfully shed labor costs by shifting to smaller and smaller operating crews. Now, it’s on the verge of what was once an unthinkable victory: single-member crews, even on dangerous oil trains.

A tentative agreement reached by BNSF Railway and the Transportation Division of the Sheet Metal, Air, Rail and Transportation (SMART) union would allow a single engineer to operate most of the company’s routes. It would mark a dramatic change to a labor contract that covers about 3,000 workers, or 60 percent of the BNSF system.  

It’s not just bad news for workers. The contract has major safety implications—especially amid North America’s dangerous, and sometimes deadly, crude-by-rail boom. Last year’s Bakken shale oil train derailment and explosion in Lac Mégantic, Quebec, which killed 47 people, brought increased scrutiny to oil trains. 

In response, Canadian regulators outlawed one-person crews on trains carrying hazardous materials. (A single engineer was in charge of the ill-fated train, although it was unmanned when it rolled into the town center.) 

BNSF spokesperson Roxanne Butler told DeSmogBlog the new contract would not apply to so-called “key trains” — loads of crude oil, ethanol and other hazardous materials.

As it stands, she says, the company mandates two-member crews for such shipments , and those are the terms of BNSF’s existing labor agreement.

But there is no federal law on the books that requires two-person rail crews for shipments of dangerous goods. The Federal Railway Administration (FRA) is expected to issue a proposed rule on the subject by the end of the year.

Workers worry that without contract guarantees, and no federal protections in place, BNSF will make the cost-cutting shift to one-person crews.

If you look at the contract, there’s nothing that shows they will exempt oil trains,” says Ron Kaminkow, general secretary of Railroad Workers United, a labor group that opposes single-employee freight trains.

[BNSF] will do whatever they want to do,” says Robert Hill, a BNSF engineer based in Hauser, Idaho, roughly twenty miles east of Spokane, a major rail hub for the Northwest. “At some point, you eventually will see a one-man crew on these oil [trains]. There’s nothing specific in their company policy that says they have to have two-man crews on oil trains.”

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