Oil to Market: Every Which Way but Pipeline
Thursday - 3/21/2013, 2:14pm  ET
Some have dismissed shipping oil by rail as being merely a fad, a temporary fix to a short-term problem. Today, Fool.com contributors Aimee Duffy and Tyler Crowe talk about why recent deals made between Phillips 66 and two midstream companies signal something more permanent. Aimee lists a few reasons why producers are so willing to consider shipping not only by rail, but by barge as well, highlighting costly foreign imports and shorter contractual obligations. It is important to remember that while producers are favoring one type of transportation over another, the midstream industry will still benefit.
Perhaps shipping oil will help this railroad face the difficult obstacles ahead of it caused both by the domestic surplus of natural gas and coal’s declining popularity. Still, with 21,000 miles of track serving two-thirds of the U.S. population, CSX maintains a valuable proprietary asset. To help investors better understand how CSX can deal with these challenges, The Motley Fool has released a brand-new premium research report authored by Isaac Pino, the industrials bureau chief. Isaac provides an in-depth look at CSX’s competitive advantages, areas of risk, and prospects for the future. Simply click here now to access your copy of this invaluable investor's resource.
This article was originally published as Oil to Market: Every Which Way but Pipelineon Fool.com
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