• 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
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
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
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Markets sell off as U.S.-Iran ceasefire plans go nowhere, leaving Trump with military options to reopen the Strait of Hormuz
EnergyIran
Markets sell off as U.S.-Iran ceasefire plans go nowhere, leaving Trump with military options to reopen the Strait of Hormuz
By Jason MaMay 10, 2026
3 hours ago
Mexican cartel armed with explosives launched from drones attacks rural communities, forcing 800-1,000 families to flee
North AmericaMexico
Mexican cartel armed with explosives launched from drones attacks rural communities, forcing 800-1,000 families to flee
By Megan Janetsky and The Associated PressMay 10, 2026
5 hours ago
Mah Sing sees natural ‘spillovers’ from Malaysia’s strong growth, as the conglomerate bets on premium residences and data centers
Real EstateSoutheast Asia 500
Mah Sing sees natural ‘spillovers’ from Malaysia’s strong growth, as the conglomerate bets on premium residences and data centers
By Angelica AngMay 10, 2026
5 hours ago
The Strait of Hormuz crisis shows energy security is now a boardroom issue
Commentaryoil and gas
The Strait of Hormuz crisis shows energy security is now a boardroom issue
By Victor NianMay 10, 2026
5 hours ago
Trump quickly blasts Iran’s response to U.S. ceasefire proposal as ‘totally unacceptable’ after warning Tehran ‘will be laughing no longer’
PoliticsIran
Trump quickly blasts Iran’s response to U.S. ceasefire proposal as ‘totally unacceptable’ after warning Tehran ‘will be laughing no longer’
By Jon Gambrell, Samy Magdy and The Associated PressMay 10, 2026
5 hours ago
Market guru Yardeni sees S&P 500 hitting 8,250 this year, highest among top Wall Street forecasters, as earnings bolster ‘Roaring 2020s’
InvestingS&P 500
Market guru Yardeni sees S&P 500 hitting 8,250 this year, highest among top Wall Street forecasters, as earnings bolster ‘Roaring 2020s’
By Jason MaMay 10, 2026
6 hours ago

Most Popular

‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
Economy
‘This is the way’: Elon Musk endorses Warren Buffett’s famed 5-minute plan to fix the national debt
By Jacqueline MunisMay 10, 2026
13 hours ago
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
Tech
OpenAI CEO Sam Altman says Gen Z and millennials are using ChatGPT like a 'life advisor'—but college students might be one step ahead
By Sydney LakeMay 10, 2026
14 hours ago
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
Future of Work
'Employers are increasingly turning to degree and GPA' in hiring: Recruiters retreat from ‘talent is everywhere,’ double down on top colleges
By Jake AngeloMay 9, 2026
2 days ago
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
Success
Red flag test: former CEO explains why he rejects job candidates who say they can start right away
By Orianna Rosa RoyleMay 9, 2026
2 days ago
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
Politics
Ted Cruz says the quiet part out loud: Trump accounts are Social Security personal accounts as GOP senator reveals 'dirty little secret'
By Jason MaMay 9, 2026
1 day ago
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
Commentary
Trump thinks he's flying to Beijing with leverage. China spent 6 years making sure he doesn't have any
By Steve H. HankeMay 10, 2026
16 hours 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.