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Crude oil will continue rolling by rail

  • Shipments of crude oil by rail have risen sharply as uncertainty over several big pipeline projects including Keystone XL has sent some oil companies looking to rail as a longer-term solution.
  • Rail offers flexibility, allowing shippers quickly to redirect supplies to wherever they are most valued; coastal refineries aren’t convenient to the pipeline network and likely never will be.
  • Although the profitability of crude by rail is being squeezed by rising benchmark prices, customers and railroads alike are still investing in terminals and signing long-term contracts, suggesting that crude by rail is here to stay.
Comments (1)
  • bob adamson
    , contributor
    Comments (4555) | Send Message
     
    An interesting article in the August 2nd Globe and Mail calls into question the safety of transporting Bakken oil by rail, it may be too flammable.

     

    http://bit.ly/1bSIA0F

     

    Arguably the transportation of this oil by pipeline would be much safer, possibly mixed with syncrude from Alberta via the Keystone XL.
    2 Aug 2013, 12:42 PM Reply Like
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