Train on Fire: Will Oil by Rail Come to a Screeching Halt?

In 2008, a mere 18,000 barrels of oil per day traveled around the U.S. on trains. As of 2013, that number was in the neighborhood of 600,000 barrels per day. As the volume of oil transported by rail has soared, so have the number of high-profile derailments. In fact, we have had two derailments in as many weeks, the most recent coming Tuesday night when a Canadian National Railway (NYSE: CNI  ) freight train derailed outside of Plaster Rock, New Brunswick.

Analysts will tell you that the incidents -- outright tragedies in some cases -- will have little effect on rail volumes, though we may see increases in regulation. In this video, Fool.com contributor Aimee Duffy talks about the importance of evaluating your holdings based on changes in the oil by rail narrative, focusing on Bakken oil patch players like Continental Resources (NYSE: CLR  ) and Enbridge Energy Partners (NYSE: EEP  ) .

Build your wealth
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report, "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2789198, ~/Articles/ArticleHandler.aspx, 4/18/2014 7:35:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement