INTRODUCTION

Early in the morning of July 6, 2013, a runaway train carrying 72 oil tankers derailed on its way to downtown Lac-Megantic, Quebec. A tanker exploded, igniting oil, killing 47 people, and destroying many buildings and other infrastructure in the city center. The derailment, the fourth deadliest rail disaster in Canadian history, changed rail safety rules and brought legal action against the company and the employees involved in the accident. Years after the derailment, reconstruction was still underway, and many residents of the city continued to suffer from post-traumatic stress.

Disaster

On July 5, 2013, railway engineer Thomas Harding, an employee of the Montreal, Maine & Atlantic Railroad Company, parked a train for the night in the city of Nantes, Quebec. Nantes is located about10 km northwest of Lac-Megantic, a town of 6,000 inhabitants in the Estrie region of the province. (Valiante)

The train consisted of a locomotive and 72 tankers and transported approximately 8 million liters of crude oil from the oil fields in North Dakota, USA. The oil was to be sent to a refinery in New Brunswick. When Thomas Harding stopped the train, he left the locomotive that maintained the air brake system running. However, Harding did not properly apply the handbrake to the train, leaving it improperly secured during disembarkation at Nantes. After Harding left for the night, a fire broke out in the train's main engine, the locomotive. Firefighters responded to the call and extinguished the fire. They also shut down the train's engine, which is part of the train's braking system. When the firefighters left for the night, the train's air brakes failed because the engine had stopped. Shortly before 1:00 a.m. on 6 July 2013, the train began to move slowly towards the town of Lac Megantic as Harding had not applied enough handbrakes. The train reached a top speed of over 100 km/h and derailed as it approached the center of Lac-Megantic around 1:00 am.

00:00 About 6 million liters of crude oil spilled from 63 tankers, derailed, and exploded, killing 47 people, displacing about 2,000 from their homes, and destroying much of the city center. was destroyed. About 100,000 liters of oil spilled into the nearby Chaudire River, raising serious concerns about its long-term environmental impact on downstream waterways, wildlife, and communities. (Valiante)

Geographical And Economic Position Of Canada In Oil And LNG Shipment:

In 2020, Canadian oil and natural gas supported close to 400,000 employments across the country and added $105 billion to the country's GDP. Additionally, it averaged $10 billion in annual government revenue from 2017 to 2019. a hospital, a school, and a road. The natural gas sector is expected to have a $250 billion overall influence on Canada's GDP from 2019 to 2029.

The Atlantic offshore oil and gas sector of Canada's economy also offers a number of advantages. About 6,000 people are employed directly and thousands more are employed indirectly. Spending on manufacturing in Atlantic Canada from 1999 to 2019 is close to $98 billion. From 1999 to 2019, the governments of Nova Scotia and Newfoundland and Labrador received royalties of $25 billion, of around $506 million was used for training, education, and research. (Canada's Economic Contribution: Canada Natural Resources & GDP, n.d.)

Eighteen LNG export facilities have been proposed in Canada - 13 in British Columbia, 2 in Quebec and 3 in Nova Scotia - with a total proposed export capacity of 216 mtpa of LNG. Since 2011, 24 LNG projects have been issued long-term export licenses. Canada's only operational LNG terminal is Canaport LNG's regasification import terminal located in Saint John, New Brunswick. (Government of Canada, n.d.) (Canada Energy Regulator / Rgie de l'nergie du Canada, n.d.)

Global And North American Crude Oil Markets

In 2019, Canada was the world's fourth-largest crude oil producer, producing 5.9% of the total global supply. (Statistical Review of World Energy: Energy economics: Home, n.d.) Oil sand production increased by 25% between 2015 and 2019, increasing total Canadian crude oil production. The quality of crude oil produced in Canada varies considerably. Most of the crude oil produced in Canada is transported by pipeline from the western provinces to refineries in the United States, Quebec, and Ontario. In 2020, Canada exported 82% of the crude oil produced. Most of this product went to the United States and the remaining 17% was primarily refined in Canada. (Canada Energy Regulator / Rgie de l'nergie du Canada, 2022) Supply and disposition of crude oil (refer to Appendix C)

Most Canadian refineries are either not configured to process the heavy crude that grows from the oil sands or may not have access to it. As a result, Canadian refineries in Ontario, Quebec, Newfoundland and Labrador and New Brunswick import light crude oil. (Canada Energy Regulator / Rgie de l'nergie du Canada, 2022)

Types Of Transportation Used

Normally 3 types of transportation are used Rail, Pipeline and Marine tanker. For percentage wise distribution of Oil exports (refer Appendix D)

Oil By Pipeline

Pipelines that have been produced are typically sent in batches because the various feedstocks must be kept apart to prevent contamination. Compared to transferring a solitary product, batch shipments of several commodities add to the complexity of planning receipts and deliveries. However, the systems' effectiveness has increased as a result of the optimization of high-quality batch processing rules. Before being injected into the pipeline, every product is scheduled to a location. There are various methods that oil physically flows from producers to refineries, and it can be kept until it is needed. Storage facilities may be situated upstream close to manufacturing facilities, downstream from refineries, or connected to the feeder and bulk export pipelines. (Canada Energy Regulator / Rgie de l'nergie du Canada, 2022) Appendix E shows us the major CER Oil pipelines.

Crude By Rail

Rail transportation of crude oil is more expensive than pipeline and tanker transportation. When pipeline infrastructure is unavailable or when price differences are great enough to make rail economical, rail is typically used. Depending on the shipper, a different amount must be paid to justify rail transportation of crude oil. The COVID-19 pandemic's impact on the world's demand for crude oil has had a substantial effect on the Canadian petroleum industry since March 2020. By voluntarily stopping output, producers helped export pipeline capacity limits. As a result, the WCS-WTI differential decreased, and the railroad's profitability was largely eliminated. (Canada Energy Regulator / Rgie de l'nergie du Canada, 2022) Appendix F shows us Crude exports by rail.

Crude By Tanker

Eight percent of Canada's crude oil exports in 2020 were made by ocean-going (tanker) ships. Tankers exist in a variety of sizes, and larger tankers benefit more from scale economies.

Crude oil is shipped from the west and east coasts of Canada by tanker. Export from Burnaby, British Columbia, going to the US West Coast and Asia. Tankers are employed in Atlantic Canada to ship offshore output to Europe and PADD I and III to the US. In 2016, maritime exports were 31.1 103 m3/d or 202 Mb/d on average. Maritime exports totalled 279 Mb/d (44.4 103 m3/d) in 2020. (Canada Energy Regulator / Rgie de l'nergie du Canada, 2022) Appendix G shows us Crude exports by tanker.

The Role Panama Canal Play In Growing LNG sector

The Panama Canal's function has been the fastest-growing part of the canal, which has encouraged the government to cooperate with shippers. It is a means of enhancing services.

The Panama Canal, which spans Central America's isthmus and connects the Atlantic to the Pacific Ocean via the Caribbean Sea, plays a vital role in global trade. Large container ships could not pass via the Panama Canal. But because it can compete with the expansion strategy for ports and airlines, the new canal crossing of the Panama Canal is one of humankind's greatest achievements. Due to its ability to transport larger cargoes, the Canal is significant for global trade and shipping. Transporting freight to the Atlantic and Pacific Oceans through the Panama Canal will save time and money. The Panama Canal has played a part in facilitating exports by providing a shortcut for exporting cargo. (Wang, 2017)

Safety Regulations

Canadian railroad regulations require that equipment be left unmanned with a "sufficient" number of handbrakes applied to prevent movement, and the effectiveness of the handbrakes tested. MMA regulations required a train of 72 cars to have at least 9 handbrakes. These regulations also required that the train's air brake system not rely on it to prevent unwanted movement.

More important is the requirement to test the effectiveness of the handbrake. That night, the locomotive's airbrakes were left on by the engineer to test the effectiveness of the handbrake. As a result, the tests did not reveal that insufficient handbrake force had been applied to secure the train. TSB concluded that without the additional force of the airbrakes, it would have taken at least 17 and possibly up to 26 handbrakes to secure the train. (Valiante)

Changes Made After Accident

The economic and political pressures to move oil far outweigh efforts to improve the country's rail infrastructure and impose new regulations on the oil or rail industry. Kenton Onstad, a North Dakota state legislator who lives just outside Newtown, where the train that exploded at Lac Megantic originated, said the country's oil rail infrastructure needed an overhaul, and that already started years ago. According to Onstad, officials have known that Bakken's output has been close to current levels since 2009 but have done little to prepare for an oil boom.

The Major Errors Which Resulted In This Mishap, Were.

Human error played a role in the Lac-Mgantic accident in several ways. First, the train's engineer, Tom Harding, failed to properly apply the brakes when he left the train unattended on a hill. This allowed the train to roll downhill and pick up speed, making it much more difficult to stop when it reached the town. Second, the railway employees who were tasked with rerouting the train around the Lac-Mgantic accident site did not follow proper procedures. This resulted in the train being routed onto a track that was not designed to handle the heavy load, which ultimately led to the derailment. (trainjane, 2013)

Mechanical failure also played a role in the accident. The train's brakes were not properly maintained and did not work properly when the engineer tried to stop the train. In addition, the track on which the train was routed was not designed to handle the heavy load, which resulted in the derailment Bad weather also played a role in the accident. The night of the accident was extremely humid, which caused the air brakes to fail. The humidity also made it more difficult for the train's engineer to see the track ahead, which may have contributed to the derailment. (trainjane, 2013)

In addition to the reasons mentioned above, the factors that contributed to the Lac-Mgantic accident. One is the fact that the railway track was in poor condition, which contributed to the derailment. Another factor is the fact that the brakes on the train were not properly applied, which also contributed to the accident. Finally, the fact that the train was carrying such a large amount of crude oil also played a role in the accident, as this made the fire much more difficult to extinguish.

The Quebec government implemented a legislation prohibiting one-person crews on trains carrying hazardous materials because of the accident. In August 2013, MMA applied for bankruptcy protection in both Canada and the US. The court approved the transfer of MMA's Canadian assets to the Canadian National Railway in January 2014. (CN). Three former MMA employees were accused of 47 counts of criminal negligence resulting in death in November 2014. The Lac-Mgantic tragedy was the fourth deadliest rail accident in North America since 1967 and the deadliest railway accident to occur in Canada since the St-Hilaire train accident in 1864. (Valiante)

Safety Implications

In addition to increasing amounts of oil and other hazardous materials on rails, high-profile accidents, such as the July 6, 2013, accident in Lac-Megantic, Quebec, raised concerns about rail safety. The Transportation Safety Board (TSB) conducted a thorough accident investigation and issued a final report in August 2014. The TSB made a total of five recommendations. Transport Canada has accepted and incorporated all TSB recommendations. However, 3 of the 5 recommendations remain active. (Minsky, 2014)

Immediately after the tragedy, Transport Canada embarked on an aggressive and accelerated agenda to develop regulations to improve safe rail transport and prevent accidents. We have taken concrete steps to respond to the TSB's recommendations, including the review of the 2007 Railway Safety Act and the 2013 Office of the Comptroller's Report on the Ministry of Finance's Railway Safety Oversight Program. It also responds to many recommendations from other sources, such as Transport Canada needs better oversight of the company's safety management system. According to TBS, it is not enough for a company to have a system on paper, it must be reliable and effective. Relying on employees to follow the rules is not enough in complex systems. Because even the hardest working people with the best intentions can make mistakes, says Laporte.

The TSB stated that "the seven handbrakes applied to secure the train were insufficient to hold it without the additional stopping power of the locomotive's independent brakes." (Canada, T, 2019)

Trade Facilitation

The Canadian government has pledged to support communities in Lac-Megantic and the surrounding area, ensure rail safety, and move the bypass project forward as quickly as possible.

The Minister of Transport would like to inform the citizens of the municipalities of Lac-Megantic, Nantes and Frontenac about the important developments of the project in recent months. Several steps have recently been accomplished, including:

An office was recently opened in Lac-Megantic to facilitate discussions with the owners and assist them in the land acquisition negotiation process.

They had started submitting the primary purchase application form for the property and had started mutual negotiations with the owner. Bids will be submitted gradually over the next few weeks.

Many studies have been completed in recent weeks, including soil and water quality, vehicle traffic, and archaeology. The data obtained will help advance the plans and specifications during development.

The plans and specifications have reached 30% progress and have been submitted to the Canadian Transport Agency to begin the permitting process for the project.

Transport Canada is listening to its citizens and will continue to educate the Lac Her Megantic community and surrounding areas as the project progresses. Once all necessary regulatory approvals have been obtained, construction of the bypass can begin on the land purchased for the project. (Canada, T)

What Are The Alternatives

As far as my view point is concerned, Petroleum without a specific use must be eliminated. Large quantities of crude oil drums must be moved from oil wells to plants and storage facilities so that they can finally be used as storage facilities. Oil firms should evaluate the base, geography, and cost suggestions to choose the optimum route of travel after effectively removing oil items from the start. The ideal solutions for their network's power supply will advance things while raising their primary issues and lowering costs. (Wang, 2017)

I need an executive summary of this body of work