Pipelines Packed, Rail to Reap Oil Riches

By Tom Jacobs – Jun 17, 2013 at 3:09PM

NASDAQ: CSX

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With pipelines from Canada to the U.S. at full capacity, railroads pick up the slack to move cheaper Canadian heavy crude to thirsty Gulf Coast refiners. Profits are in store for these five companies.

With oil pipelines from Canada filled to capacity, how do Gulf Coast refiners secure the heavy crude to produce the profitable diesel and jet fuel for investor rewards? The Keystone pipeline, if ever built, is years and billions of dollars away. Trucks can't possibly handle the entire demand. Saudi Arabian heavy crude arrives on ships but costs more than Canadian crude.

The answer? By rail. And those who build the the petroleum tank cars, retrofit their rails for the increased weight, and build railroad petroleum terminals will reap. Motley Fool Special Ops Advisor Tom Jacobs interviews Bentek Energy's Chris Micsak about the situation and the potential winners.

Motley Fool Special Ops lead advisor, and co-author of "What's Behind the Numbers?" Tom Jacobs has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.