The Biggest Threat to Oil Via Rail Are Railroads Themselves

Railroads taking all these shipments of oil is starting to become a risky business, could the railroads themselves shut it down?

Jan 11, 2014 at 3:00PM

There has been a slew of recent incidents involving railroads and oil fires, which is a bit of a change for an industry that normally flies under the attention of the national media. Aside from the unwanted attention, oil via rail is bringing with it some increased risks for the railroad industry. Between the increased liability, the disruption and service, and the costs that could arise from regulation, there is a slim chance that the rail industry could say "Enough is enough" and send oil producers looking for another way to move crude. 

So what would happen if rail companies said "no"? Tune into the video to find out why Enbridge Energy Partners (NYSE:EEP) and Plains All American (NYSE:PAA) will feast and Continental Resources (NYSE: CLR) and Oasis Petroleum (NYSE:OAS) will famine in the event this happens and why rail giving up on oil shipments isn't as bizzare as it sounds.

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Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe owns shares of Berkshire Hathaway. The Motley Fool recommends Enbridge Energy Partners. It recommends and 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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