Will Rail Companies Get Priced out of the Oil Business
For regions of the U.S. just recently discovering oil, rail companies have been saviors. The flexibility of rail to move product to places pipe couldn't go provided unique opportunities for both producers and refiners. Despite rail being a more expensive option, the difference in price between domestic crude and international crude was so great that it was still worth it to ship by rail.
Today, though, the price difference between domestic and foreign oil is getting smaller, and the economic advantage of moving via rail is becoming less and less attractive. In this video, Fool.com contributor Tyler Crowe looks at who has benefited the most from this surge in rail shipments and who will be able to take advantage of the new prices.
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The article Will Rail Companies Get Priced out of the Oil Business originally appeared on Fool.com.Motley Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. 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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