Mizuho: New crude-by-rail rules could hit Hess, Marathon, others

Recent accidents involving crude oil being shipped from North Dakota are raising eyebrows on Wall Street and have analysts looking at companies that could be exposed to new rules governing oil shipments from the region.

Mizuho analyst John Malone says costs related to "stricter transport standards could squeeze margins further" on oil out of the Bakken shale, citing several stocks with the potential to suffer as a result, including Hess (HES), Marathon Oil (MRO), Continental Resources (CLR), Oasis Petroleum (OAS), EOG Resources (EOG), Whiting Petroleum (WLL), Kodiak Oil & Gas (KOG) and Triangle Petroleum (TPLM).

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Comments (11)
  • WhiteTiger575
    , contributor
    Comments (215) | Send Message
    It might have been helpful to expand on the "recent accidents" and tie in how the companies participate in these practices, thus exposed to the regulations. Sorry I find this briefing too brief.
    7 Jan 2014, 02:24 PM Reply Like
    , contributor
    Comments (47) | Send Message
    I wonder if the EPA and any other administrative office that is changing the transportation of oil by rail have cleared this with Obama. The rail margins will be squeezed as well and they are owned by his buddy Warren Buffet.
    7 Jan 2014, 03:35 PM Reply Like
  • vaquero
    , contributor
    Comments (2) | Send Message
    I don't think the companies do "participate in these practices." Regulators never see an incident but what it becomes the justification for increased control. It's all about control, not safety or determining the real cause of incidents.
    7 Jan 2014, 03:38 PM Reply Like
  • Hendershott
    , contributor
    Comments (1785) | Send Message
    "It's all about control"? Maybe it's about controlling the risks of exploding tank cars?
    7 Jan 2014, 07:26 PM Reply Like
  • johnbuck1188
    , contributor
    Comments (48) | Send Message
    Last year TPLM went into a partnership to build a pipeline out of the bakken, And will benefit from other companies using there pipeline.
    7 Jan 2014, 04:18 PM Reply Like
  • Pablomike
    , contributor
    Comments (4721) | Send Message
    Are you referring to Caliber? They are piping frac water and waste water and gas not crude.
    7 Jan 2014, 05:59 PM Reply Like
  • User 13207752
    , contributor
    Comment (1) | Send Message
    Amen to johnbuck1188. TPLM has looked into the crystal ball of Bakken transportation of energy in our future.


    If every E&P company waits for infrastructure to be developed to their convenience, some will be disappointed.


    Fortunately for investors, some companies are building their own pipeline in order to get their products out of exploration areas and into refineries. I believe in TPLM's management.
    7 Jan 2014, 06:35 PM Reply Like
  • rmiers1
    , contributor
    Comments (53) | Send Message
    it seems to me that the "no pipe" Obama and the "train man" buffett do not care bout danger of wheel transportation of flammable liquids. No wonder buffet bought that railroad just as balkan oil fields came on line. Shame
    7 Jan 2014, 06:44 PM Reply Like
  • Sirloin
    , contributor
    Comments (9) | Send Message
    How trains can collide in this day and age is beyond me. The transport industry is in need of a long over due shake up from all stake holders. I am long on TPLM.
    7 Jan 2014, 07:55 PM Reply Like
  • solojif
    , contributor
    Comments (133) | Send Message
    Funny how you dont hear much about the grain car that derailed. Then the train hauling the crude hit it. I guess more requlation on the tankers hauling gasoline to the local gas station is needed as well. I'm no expert but I'd say gasoline is 10x's more dangerous than crude oil. Blah blah blah no pipe lines, no trains, no frac'n. Yet the groups who oppse oil use it every day. Petroleum is in everything or used to get everything we use in our daily lives.
    7 Jan 2014, 09:23 PM Reply Like
  • WhiteTiger575
    , contributor
    Comments (215) | Send Message
    The reason Solar, ethanol, and wind energy have gained popularity is that they work and are not pumping pollution into the air. The good news is that consumption of oil is declining. Soon Solar will be cheaper than coal as well. There is a reason TSLA commands such a high price. Oil and Coal will still be used and will remain profitable, but it is screwing up the air we breathe and contributes to global warming. Look at the changing weather patterns right now and consider its importance even if it does disturb your comfort zone. In the meantime continue to enjoy the use of gasoline while it lasts. You should have plenty of time before you die. You may as well profit from it in the meantime. Long OAS, CLR
    8 Jan 2014, 03:41 PM Reply Like
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