1 Issue Oil Companies in the Bakken Have Put Off Could Bite Back This Year

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. 


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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2914021, ~/Articles/ArticleHandler.aspx, 12/21/2014 7:04:40 PM

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...


Advertisement