Some have dismissed shipping oil by rail as being merely a fad, a temporary fix to a short-term problem. Today, Fool.com contributors Aimee Duffy and Tyler Crowe talk about why recent deals made between Phillips 66 (NYSE:PSX) and two midstream companies signal something more permanent. Aimee lists a few reasons why producers are so willing to consider shipping not only by rail, but by barge as well, highlighting costly foreign imports and shorter contractual obligations. It is important to remember that while producers are favoring one type of transportation over another, the midstream industry will still benefit.
Fool contributor Aimee Duffy has no position in any stocks mentioned. Click here to see her holdings and a short bio. If you have the energy, check out what she's keeping an eye on by following her on Twitter, where she goes by @TMFDuffy. Fool contributor Tyler Crowe has no position in any stocks mentioned.
The Motley Fool has no position in any of the stocks mentioned. 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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