Oil to Market: Every Which Way but Pipeline

Updated

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.


The article Oil to Market: Every Which Way but Pipeline originally appeared on Fool.com.

Fool contributor Aimee Duffy has no position in any stocks mentioned. Click here to see her holdings and a short bio. If you have the energy, check out what she's keeping an eye on by following her on Twitter, where she goes by @TMFDuffy. Fool contributor Tyler Crowe has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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