Congress can stop the boom in oil tank cars

Recent weeks have seen a number of destructive explosions following oil train derailments in several U.S. states. These disasters follow a dramatic increase in the number of new oil tank cars on the rails since 2011 which are associated with the boom in unconventional oil extraction in states such as North Dakota. Jeff D. Makholm examines why so many dangerous oil tank cars are on the rails, arguing that the main cause is a lack of federal licencing authority over oil pipelines. He writes that oil pipelines in America are governed by a myriad of regulatory agencies and authorities which makes expanding the pipeline system difficult and costly. If Congress wants to make oil transportation safer, it should look to the gas industry’s regulatory model for inspiration on which reforms to put into place.