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Kodiak Oil & Gas Corp. Message Board

  • uwin2day4gd uwin2day4gd Jul 11, 2013 3:52 PM Flag

    This drop today is probably more about the Moodys negative credit rating bias

    Buying Kog with that mountain of debt would take some very deep pockets.And a lot of patience to recover their money.With Moodys whipping the Baaken this promises to be ugly.I bet the railroads will now start charging more to help cover any liability on oil train disasters.

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    • Although I believe the train wreck in Canada will likely have issues for all rail transport, I feel Moody's has over-reached. For why do we not have a decrease in credit ranking for every time a pipeline leaks or is shutdown, or a key refinery is down for any reason? I DO feel this disaster in Canada will have ramifications for rail services though, as there has been a loss of life!...expect some regulatory outcome to occur. Meanwhile oil prices have increased to well over $95 per barrel while oil naysayers were telling us to expect $80 or less this summer just two months ago.

    • They would never recover their money. That's the whole point.

    • Crash your own train, raise transport prices, maybe it was on purpose.

    • Below is from a July 2012 article on problems with the rail car design in Canadian wreck. The railroads have the issue

      For two decades, one of the most commonly used types of rail tanker has been allowed to haul hazardous liquids from coast to coast even though transportation officials were aware of a dangerous design flaw that almost guarantees the car will tear open in an accident, potentially spilling cargo that could catch fire, explode or contaminate the environment.

      The rail and chemical industries have committed to a safer design for new tankers but are pressing regulators not to require modifications to tens of thousands of existing cars, despite a spike in the number of accidents as more tankers are put into service to accommodate soaring demand for ethanol, the highly flammable corn-based fuel usually transported by rail.

      Derailments have triggered chemical spills and massive blasts like one in July in Columbus, Ohio, that blew up with such intensity that one witness said it "looked like the sun exploded." Some communities with busy railways are beginning to regard the tankers as a serious threat to public safety.

      "There's a law of averages that gives me great concern," said Jim Arie, fire chief in Barrington, a wealthy Chicago suburb where ethanol tankers snake through a bustling downtown. "Sometimes I don't sleep well at night."

      He's not the only one. The town's mayor is trying to build a national coalition to push for safety reforms.

      The tanker, known as the DOT-111, is a workhorse of the American rail fleet, with a soda-can shape that makes it one of the most easily recognizable cars on freight routes.

      The tanker itself is not suspected of causing derailments, but the National Transportation Safety Board has noted several worrisome problems: Its steel shell is too thin to resist puncture in accidents. The ends are especially vulnerable to tears from couplers that can fly up after ripping off between cars. And unloading valves and other exposed fittings on the tops of tankers can also break during rollovers.

      The flaws were noted as far back as a 1991 safety study.

    • The railroads will need to get their old problematic tank cars off the rails. Government has issued warnings on these old tankers for years.

      "The oil-laden train that derailed and exploded in a small Canadian town on Saturday, possibly killing as many as 50 people, included a class of railcar whose vulnerability to leaks and deadly explosions was well known to regulators.

      The U.S. National Transportation Safety Board has issued safety guidelines on the widely used, cylindrical tank cars known as DOT-111s, including a recommendation that all tank cars used to carry ethanol and crude oil be reinforced to make them more resistant to punctures if trains derail."

 
KOG
9.37-0.33(-3.40%)Nov 26 4:04 PMEST

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