Extracted from a longer piece on Yahoo/Reuters:
Billionaire investor Warren Buffett is set to be a chief beneficiary of a bid by Senate Republicans to weaken new regulations to improve train safety in the $2.8 billion crude-by-rail industry, a key cog in the development of the vast North American shale oil fields.
A series of oil train accidents, including the July 2013 explosion of a train carrying crude in Lac-Megantic, Quebec, that killed 47 people, led U.S. and Canadian regulators to announce sweeping safety rules in May. Among other things, U.S. oil trains are required to install new electronically controlled pneumatic (ECP) brakes.
But in late June, the Republican-controlled Senate Commerce Committee approved a measure to drop that requirement, and order years of new research to confirm the safety benefits of ECP brakes.
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The series of oil train explosions in recent years follows a boom in U.S. shale oil production, notably in the Bakken region of North Dakota. Bakken crude has helped reduce U.S. dependence on foreign oil but is also considered more volatile and flammable than heavier crudes.
Because the landlocked Bakken region is not easily accessed by oil pipelines, rail provides the main transportation route. The result has been a bonanza in the crude by rail business. Shipments surged to more than 350 million barrels in 2014 from less than 680,000 barrels in 2008, according to industry data.
BNSF has been the biggest beneficiary. In 2013, the railroad hauled 324,206 carloads of crude oil, about three quarters of the industry's total volume of 435,560 carloads, according to data provided by the company and AAR.
But BNSF also has been involved in six of the 18 U.S. oil train derailments since the Lac-Megantic disaster, second only to CSX, which has had seven. The latest BNSF derailment was in Heimdal, North Dakota, on May 6. Ten cars left the rails. The crude caught fire, forcing the town of 40 to evacuate.