Seeking Alpha

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 (4559) | 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
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs