Rail is no longer seen as just a stopgap for transporting oil until pipelines are built. Case in...

Rail is no longer seen as just a stopgap for transporting oil until pipelines are built. Case in point: Kinder Morgan Partners' (NYSE:KMP) proposed 277K bbl/day Freedom pipeline would be the first to bring light, sweet oil from Texas' Permian Basin to California, but refiners Valero (NYSE:VLO), Tesoro (TSO) and Phillips 66 (NYSE:PSX) won't sign contracts to use Freedom, preferring the flexibility of rail cars and barges.