Is Keystone XL's Approval Coming After Train Explosions?

Flammable crude is sparking more interest and moving public opinion toward pipeline crude transportation. Will this also lead to the approval of the Keystone XL pipeline?

Jan 8, 2014 at 2:05PM

Is Bakken crude oil more explosive than other types of crude? This question is being explored by the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration after BNSF's recent train derailment and explosion outside of Fargo, N.D. Light sweet crude from the Bakken Shale was involved in three terrific explosions in 2013, leading authorities to test the flammability of the oil. 

While more scrutiny and negative public opinion are cast upon crude-by-rail transportation, TransCanada (NYSE:TRP) and other crude producers are hoping more pipeline capacity is approved to move the crude. The most contentious project is currently the northern portion of the Keystone XL pipeline, which is still being reviewed by President Obama. While crude-by-oil accidents are rare, the magnitude of the rare explosions might open the door for more pipeline operators in both the United States and Canada.

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This segment is from Tuesday's edition of "Digging for Value," in which sector analysts Joel South and Taylor Muckerman discuss energy and materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors @TMFEnergy.


Joel South and Taylor Muckerman have no position in any stocks mentioned, and neither does The Motley Fool. 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.