The increased use of oil via rail is estimated to move just as much oil into the U.S. as TransCanada's Keystone XL pipeline. If it is getting here anyway, then do we even need it?
The decision to approve or reject TransCanada's (NYSE:TRP) Keystone XL pipeline has dragged on for more than five years now. Since that time, energy companies have figured out that they can just move oil via rail instead. This revelation has resulted in many Canadian oil companies sending oil to the U.S. via rail. It is estimated that these oil shipments and the projects in place to increase capacity will equal the total capacity of the Keystone XL pipeline.
This raises a pertinent question: Do we even need the pipeline anymore? Tune into the video below to find out why Fool contributor Tyler Crowe thinks the surge in oil via rail is a case for the pipeline. He also discusses why low-cost oil sand producers like ConocoPhillips (NYSE:COP) and Devon Energy (NYSE:DVN) are going to benefit whether the pipeline gets built or not.