Major Oil Pipeline Rejected - But Will Alternatives Have Greater Environmental Impacts?

Kinder Morgan's proposed $2 billion 'Freedom Pipeline' to transport West Texas oil to California refineries has been rejected - not by a governmental entity as occurred with the Northern Gateway, but by oil refineries opting to ship by rail instead.

2 minute read

June 7, 2013, 12:00 PM PDT

By Irvin Dawid


Ben Lefebvre writes how transporting oil by rail has changed from being a last resort or a temporary measure to being a realistic, permanent alternative to oil pipelines, 

Once seen as temporary necessities to deliver oil from emerging oil-producing regions in Alberta, Texas and North Dakota, rail cars have become a permanent fixture of the North American energy landscape because they allow refiners more diversity of supply.

The 277,000 barrel-a-day pipeline was proposed by Kinder Morgan "to woo West Coast refiners dependent on more expensive (imported) oil. Refiners in the fuel-hungry California market are eager to buy the same cheaper domestic crude that is already benefiting their competitors in the Midwest and Gulf Coast."

In 2012, California imported 51% of its crude for refineries, plus 12% was shipped from Alaska according to the Ca. Energy Commission  - both are more expensive than oil from N.D., Texas, and Alberta, Canada.

The Freedom Pipeline would have charged a $5-a-barrel tariff. Valero, Tesoro and other refiners opted to "ship crude oil via rail from the Bakken oil field in North Dakota", saying it would cost about the same as the pipeline from Texas, give them more flexibility, and not "tie them down to long-term pipeline contracts."

In fact, Bay Area refineries are already receiving oil via rail from inland sources - including Canada, to the dismay of local environmentalists.

Matthias Gafni of the Contra Costa Times writes on June 1 that the "Bay Area's five refineries have quietly moved toward transporting controversial Canadian tar sands crude oil via another means: rail."

With rail mishaps more common than pipeline failures, Bay Area environmentalists who have previously fought the Keystone pipeline from afar are now paying attention to the possibility of trains full of the heavy crude materials or already refined bitumen rolling through local neighborhoods and into refineries.

While major oil pipelines like Keystone XL in the U.S. and Northern Gateway in Canada have become a target for environmentalists in both countries to prevent tapping Alberta's vast oil sands, will they be able to stop having it shipped by rail? 

Friday, May 31, 2013 in The Wall Street Journal

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Concrete Brutalism building with slanted walls and light visible through an atrium.

What ‘The Brutalist’ Teaches Us About Modern Cities

How architecture and urban landscapes reflect the trauma and dysfunction of the post-war experience.

February 28, 2025 - Justin Hollander

Complete Street

‘Complete Streets’ Webpage Deleted in Federal Purge

Basic resources and information on building bike lanes and sidewalks, formerly housed on the government’s Complete Streets website, are now gone.

February 27, 2025 - Streetsblog USA

Green electric Volkswagen van against a beach backdrop.

The VW Bus is Back — Now as an Electric Minivan

Volkswagen’s ID. Buzz reimagines its iconic Bus as a fully electric minivan, blending retro design with modern technology, a 231-mile range, and practical versatility to offer a stylish yet functional EV for the future.

March 3, 2025 - ABC 7 Eyewitness News

View of mountains with large shrubs in foreground in Altadena, California.

Healing Through Parks: Altadena’s Path to Recovery After the Eaton Fire

In the wake of the Eaton Fire, Altadena is uniting to restore Loma Alta Park, creating a renewed space for recreation, community gathering, and resilience.

7 hours ago - Pasadena NOw

Aerial view of single-family homes with swimming pools in San Diego, California.

San Diego to Rescind Multi-Unit ADU Rule

The city wants to close a loophole that allowed developers to build apartment buildings on single-family lots as ADUs.

March 9 - Axios

Close-up of row of electric cars plugged into chargers at outdoor station.

Electric Vehicles for All? Study Finds Disparities in Access and Incentives

A new UCLA study finds that while California has made progress in electric vehicle adoption, disadvantaged communities remain underserved in EV incentives, ownership, and charging access, requiring targeted policy changes to advance equity.

March 9 - UCLA Luskin Center for Innovation