Intertek is responding to the recent U.S. government order mandating proper testing and classification of crude oil, prior to being offered into railcar transportation. The company provides a range of physical property testing services.
Increased U.S. and Canadian regulation of rail shipments of crude oil is likely, but the details aren’t certain. What is certain, according to Wells Fargo Securities, is the changes will raise costs for shippers.
U.S. energy companies using rail to carry crude must conduct tests to help ensure the oil cargoes won’t explode or eat holes through tank cars after rising train derailments spurred new emergency rules.
A barge crash that spilled enough oil to temporarily shut a stretch of the Mississippi River highlights the transportation risks of the U.S. energy boom just as regulators respond to several rail accidents involving crude.