Stocks of railway companies that transport oil may be in focus this week following the explosion...


Stocks of railway companies that transport oil may be in focus this week following the explosion yesterday of a runaway train that was carrying tankers of crude in the Quebec town of Lac-Megantic. The blast, which killed at least one person, left dozens missing and destroyed buildings, is the latest and most serious in a series of accidents involving freight trains, including those of Canadian Pacific (CP) and Berkshire Hathaway's (BRK.A) BNSF. Berkshire's Union Tank Car and Trinity Industries (TRN), which make carriages that hold the oil, may also be exposed, although the accident could strengthen the case for approving TransCanada's (TRP) Keystone oil pipeline.

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Comments (11)
  • marpy
    , contributor
    Comments (1703) | Send Message
     
    Pipelines are by far the safer and more efficient means of transporting oil. This is especially so for the new pipelines made of high strength steel and with the latest in leak detection technology.
    7 Jul 2013, 02:13 PM Reply Like
  • Michael Fitzsimmons
    , contributor
    Comments (11013) | Send Message
     
    The US has a choice: it can either supply its heavy crude oil refining capacity along the Gulf Coast with Saudi crude (as it is today), or build Keystone-XL and supply GC refiners with cheaper crude from Canada. So the question is: who holds more weight with the US government - Saudi Arabia or Canada? Although the answer should be obvious...it is not.....
    7 Jul 2013, 02:36 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1573) | Send Message
     
    The train belongs to Montreal Maine & Atlantic Railway. I do not know why you decided to blame Berkshire or Canadian Pacific for this. Oh and by the way, pipelines still spill three times as much oil as trains.

     

    http://bloom.bg/13Du8Fm
    7 Jul 2013, 04:32 PM Reply Like
  • marpy
    , contributor
    Comments (1703) | Send Message
     
    When they transport over 100 times more oil than trains, 3 times looks pretty good.
    7 Jul 2013, 06:50 PM Reply Like
  • bigbenorr
    , contributor
    Comments (1153) | Send Message
     
    The Paris-based energy adviser also said that the risk of a train spill was six times greater than a pipeline incident over the period between 2004 and 2012.
    8 Jul 2013, 12:33 AM Reply Like
  • deercreekvols
    , contributor
    Comments (9513) | Send Message
     
    Pipelines do not run away or crash. Yes they can and do leak. Maintaining pipelines (and building them) would create jobs. Unemployment numbers in the US are certainly in need of boost.

     

    The plane crash in San Francisco will not have people jumping and screaming that planes are not safe. To attack the railroad industry over this accident is absurd.

     

    Time for the US to learn a lesson from what happened and quit making everything so damn political.
    7 Jul 2013, 07:35 PM Reply Like
  • poiret08
    , contributor
    Comments (2) | Send Message
     
    In the last year, there have been 350 pipeline leaks. Transcanada pipeline purchased low grade pipe for the Keystone XL years ago from an Indian manufacturer as seen in their annual statement. Refer to the study performed by Cornell University's College of Industrial and Labour Relations for this and the economic impact of the Keystone Pipeline. TCP lies are exposed. Internationally fossil fuels receive 6xs the government subsidies of sustainable fuels. There is an international movement to divest financially portfolios of fossil fuel companies on college campuses and at NGOs and pension funds. Because politicians have been paid off by the fossil fuel companies, our energy policy is not in the Canadian or US interest. 80 + people missing with this latest train mistake. Exon arranged a no fly zone over their recent pipeline spill in Mayflower, Arkansas. That's political power. A billion dollars and 2 years later, the Kalamazoo River is still polluted from the Tar Sands spill. There is a lot of risk not yet priced into the market.
    7 Jul 2013, 07:50 PM Reply Like
  • Michael Blair
    , contributor
    Comments (5097) | Send Message
     
    @popiret08 - A lot of rhetoric but it is plain and obvious that rail transportation of oil and gas is more expensive and riskier than pipeline. The oil sands will develop with or without Keystone. The question is whether the oil will be shipped to Canada's coasts and exported to Europe or Asia or whether it will be piped to the United States. Anyone who thinks oil sand development hinges on Keystone is simply wrong. It is an alternative that benefits the United States. I presume you drove your car today, and very likely heated and cooled your home. I bet you use something made of plastic. The facts are that hydrocarbons are essential to our way of life. Making them safer is preferable to living without them.

     

    I saw some test data a while back that showed that GM Envoy SUV's using 10% ethanol burned more gasoline per mile travelled than the ones burning just gasoline, in addition to burning the ethanol. That is the power of the environmental lobby - and the absence of common sense.
    7 Jul 2013, 09:56 PM Reply Like
  • Philip Marlowe
    , contributor
    Comments (1573) | Send Message
     
    I do not want to get off on a tangent, but I am tired of this lie being repeated. The oilsands will not provide gasoline for the US regardless of where they are shipped. Even if they are shipped in the US they will be turned into diesel for Europe and/or Asia. It is a matter of chemistry -- oil sands bitumen is best suited for low sulfur diesel. It is far too expensive to make it into gasoline.

     

    So the supposed benefit to the US will be minimal.
    7 Jul 2013, 10:01 PM Reply Like
  • bigbenorr
    , contributor
    Comments (1153) | Send Message
     
    Except to those of us who own the (superior) Diesel engine!
    8 Jul 2013, 12:36 AM Reply Like
  • Sumflow
    , contributor
    Comments (3597) | Send Message
     
    Under Quebec law, owners of hazardous materials are responsible for cleanup costs in the event of a spill. Good thing pipeline owners shy away from owning cargo.
    17 Aug 2013, 12:21 PM Reply Like
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