Will Rail Wreak Havoc on Pipelines Forever?

Kinder Morgan Energy Partners had a great plan to convert some natural gas pipelines owned by El Paso Pipeline Partners into a crude oil system that would feed California refiners with West Texas crude. It looked like a win-win situation; after all, what refiner wouldn't want to replace expensive foreign imports with the cheap, homegrown stuff?

As it happens, the refiners want domestic crude, but they don't want a 20-year pipeline agreement. In this video, Fool.com contributor Aimee Duffy takes a look at who is passing on Kinder Morgan's crude and why.

It's easy to forget the necessity of midstream operators that seamlessly transport oil and gas throughout the United States. Kinder Morgan is one of these operators, and one that investors should commit to memory due to its sheer size - it's the third-largest energy company in the U.S. - not to mention its enormous potential for profits. In The Motley Fool's premium research report on Kinder Morgan, we break down the company's growing opportunity - as well as the risks to watch out for - in order to uncover whether it's a buy or a sell. To determine whether this dividend giant is right for your portfolio, simply click here now to claim your copy of this invaluable investor's resource.

The article Will Rail Wreak Havoc on Pipelines Forever? originally appeared on Fool.com.

Fool contributor Aimee Duffy has no position in any stocks mentioned. The Motley Fool recommends El Paso Pipeline Partners LP, Kinder Morgan, and ONEOK Partners, L.P. The Motley Fool owns shares of Kinder Morgan. 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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