• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Pipelines: The Worst Way to Move Oil, Except For All the Rest

By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
By
David Z. Morris
David Z. Morris
Down Arrow Button Icon
August 28, 2016, 4:31 PM ET
Unused oil tank cars are pictured on Western New York & Pennsylvania Railroad tracks outside Hindsdale, New York
Unused oil tank cars are pictured on Western New York & Pennsylvania Railroad tracks outside Hinsdale, New York August 24, 2015. Tucked away on miles-long stretches of underused rail tracks, hundreds of idle oil tank cars attest to the extent of fallout from oil's rout. The oil tank cars - a year ago sought-after to haul crude from North Dakota to New Jersey - now stand idle as a result of two converging trends: the reversal in U.S. shale oil production and the completion of new pipelines. Picture taken August 24, 2015. REUTERS/Lindsay DeDario - RTX1QIPN© Lindsay DeDario / Reuters REUTERS

The past week has seen a huge increase in attention and momentum for protests against the Dakota Access oil pipeline. Members of the Standing Rock Sioux and other Native American tribes have successfully shut down construction on the $3.7 billion line, which is intended to transport crude oil from the Bakken Shale to Illinois. The project is a subsidiary of Texas-based Energy Transfer Partners, with substantial stakes held by Enbridge Energy Partners and Marathon Petroleum Corp.

The tribes’ objections are both philosophical and practical. They have claimed in court that they weren’t given sufficient opportunity to assess the pipeline’s impact, and that it continues a legacy of exploitation by crossing ancestral land. The proposed pipeline also crosses the Missouri River just a few miles upriver from the Standing Rock Sioux Reservation, which protestors argue jeopardizes the water supply for both the tribe and the entire region in the event of a leak.

Get Data Sheet, Fortune’s technology newsletter.

That’s not an abstract worry. In 2010, a pipeline owned by Enbridge leaked 843,444 gallons of crude oil into wetlands around the Kalamazoo River in Michigan. The NTSB at the time faulted Enbridge’s inadequate leak detection systems as a partial cause of the incident, and Enbridge ultimately made a $177 million settlement with the U.S. government. The environmentalist Polaris Institute found that, according to Enbridge data, that company experienced 804 spills and released 5 million gallons of oil between 1999 and 2010.

But here’s the thing—the Sioux’s legal and ethical claims notwithstanding, blocking a pipeline might not be doing any favors for the overall safety of oil transportation. Because as environmentally disastrous and common as pipeline leaks are, the alternative may be worse.

Over the past decade, the lack of sufficient pipeline capacity (particularly in North Dakota) has made transporting oil by train increasingly common —and a boon for the rail industry. But those trains sometimes explode, as did one in Heimdal, North Dakota in May of last year. By one tally, there were ten such explosions in two years—including the nightmarish 2013 explosion of an unsupervised train in Lac-Megantic, Quebec, which killed 47 people in their sleep.

In 2015, Canada’s generally pro-fossil fuel Fraser Institute found that moving fuel by pipeline was 4.5 times safer than doing so by rail. And according to a Fraser representative at the time, “saying ‘No’ to a pipeline is saying ‘Yes’ to rail,” which will “increase the risk to the environment and human health and not decrease it.”

For more on oil infrastructure, watch our video:

That might or might not be the case with the Dakota Access Pipeline. Activists might eventually push for a re-routing of the pipeline, or some other compromise. More broadly, the shipment of crude by rail has declined significantly over the past year, both because more pipelines are being constructed, and because declining oil prices have suppressed Bakken production overall.

 

About the Author
By David Z. Morris
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Average price of new cars nears $50,000 as automakers focus on big pickups and SUVs while cheaper sedans get phased out
EconomyAutos
Average price of new cars nears $50,000 as automakers focus on big pickups and SUVs while cheaper sedans get phased out
By Alexa St. John and The Associated PressApril 11, 2026
21 minutes ago
Navy tests Hormuz blockade as expert says U.S. military prepares for round 2 and could degrade Iran’s hold over the strait to a ‘manageable level’
PoliticsIran
Navy tests Hormuz blockade as expert says U.S. military prepares for round 2 and could degrade Iran’s hold over the strait to a ‘manageable level’
By Jason MaApril 11, 2026
56 minutes ago
Pakistan sends military force to Saudi Arabia as part of pact
PoliticsMilitary
Pakistan sends military force to Saudi Arabia as part of pact
By Sara Gharaibeh and BloombergApril 11, 2026
3 hours ago
Three oil supertankers sail through the Strait of Hormuz
EnergyOil
Three oil supertankers sail through the Strait of Hormuz
By Julian Lee, Weilun Soon and BloombergApril 11, 2026
3 hours ago
Boeing’s moon rocket faces uncertain future under Trump’s NASA
PoliticsNASA
Boeing’s moon rocket faces uncertain future under Trump’s NASA
By Sana Pashankar and BloombergApril 11, 2026
3 hours ago
Some of cheapest fuel can be found on Native American reservations as tribes are exempt from state gas taxes
Energygas prices
Some of cheapest fuel can be found on Native American reservations as tribes are exempt from state gas taxes
By Mead Gruver and The Associated PressApril 11, 2026
3 hours ago

Most Popular

Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
Success
Scottie Scheffler joined Tiger Woods and Rory McIlroy in golf's $100M club—and donated his entire Ryder Cup stipend to charity
By Fortune EditorsApril 10, 2026
1 day ago
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
Politics
The Navy confirmed an ‘abundant amount’ of Uncrustables when the Artemis II crew lands. Smucker’s just offered them a lifetime supply
By Fortune EditorsApril 10, 2026
20 hours ago
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
Investing
Mark Cuban admits he made a mistake letting go of the Mavericks: 'I don't regret selling. I regret who I sold to'
By Fortune EditorsApril 9, 2026
2 days ago
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
Innovation
Schools across America are quietly admitting that screens in classrooms made students worse off and are reversing years of tech-first policies
By Fortune EditorsApril 10, 2026
1 day ago
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
Real Estate
The 'affordability economy' has created a housing market nobody predicted: Prices collapsing in the Sun Belt, soaring in the Rust Belt
By Fortune EditorsApril 11, 2026
10 hours ago
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
Economy
The U.S. government is spending $88 billion a month in interest on national debt—equal to spending on defense and education combined
By Fortune EditorsApril 9, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.