Phillips 66 Moving Cheap Oil to East Coast Refiner

Booming oil production extracted from numerous shale plays in the United States is outpacing pipeline expansion, leaving high-production companies, like those in the Bakken, struggling to find pipeline takeaway capacity. The lack of takeaway capacity is causing regional U.S. oil price discrepancies as a result. In this video, Motley Fool energy analyst Joel South tells us about a new deal from Phillips 66 (NYSE: PSX  ) in which the company will move oil to the East Coast using rail carts, supplying its East Coast refiner in Trainer, Penn., with cheaper West Texas Intermediate benchmarked crude. 

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