North Dakota's booming energy business has been driven the use of rail transport. Today, over 61% of oil production from the region leaves on a railcar, and several producers, such as Continental Resources (NYSE:CLR) and Oasis Petroleum (NYSE:OAS)-- both of which ship over 80% of their production via rail -- have enjoyed price premiums for oil moving to East and West Coast refiners. Problem is, though, many of the rail lines in the region weren't built to handle this kind of capacity. This is leading to some major bottlenecks.
To fix this problem, the major rail companies in the region will start doing huge capacity upgrades. Unfortunately, it could lead to even bigger slowdowns in the near-term future. Find out what this could mean for oil producers in the region and why investors should be aware of this situation by tuning into the video below.
America's $600 billion Energy Problem Means Invest in These 3 Stocks Today
A dark spectre is looming that is ready to stop America's Energy boom right in its tracks, and no one is talking about it. This one critical element could cost us over $600 billion, but every day we wait that number grows and grows. The US Government thinks investment in this sector is so important, even the Internal Revenue Service will give you a free pass if you invest in this select group of stocks. Our analysts at The Motley Fool have combed over this special class of stocks and we have identified 3 that could make you rich! Find out the names of these IRS-gift-wrapped stocks in our special report "3 Stocks The IRS Is Begging You To Buy." Simply click here and we'll give you free access to this valuable investing resource.
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.