Rail Cars Aren't Getting Any Safer Until 2015 at the Earliest

Rail car derailments while transporting oil have become fairly common since the middle of 2013. Will any regulation be passed in 2014 that could affect the likes of Canadian National Railway or Canadian Pacific Railway?

Taylor Muckerman
Taylor Muckerman and Joel South
Jan 19, 2014 at 1:47PM
Energy, Materials, and Utilities

This segment is from Thursday's edition of 'Digging for Value', in which sector analysts Joel South and Taylor Muckerman discuss energy & materials news with host Alison Southwick. The twice-weekly show can be viewed on Tuesdays & Thursdays. It can also be found on Twitter, along with our extended coverage of the energy & materials sectors @TMFEnergy.

Canadian National Railway track map

It didn't take long for oil transportation by rail to come under fire. In just seven months, three major incidents have taken place on major railways in both Canada and the United States. The latest involved Canadian National Railway (NYSE:CNI) rail cars derailing while full of oil.

However, demand for more capacity still looms large. So much so, that even pipeline giant, Kinder Morgan Energy Partners (UNKNOWN:KMP.DL) wants to build additional rail-loading facilities. And with so much drama surrounding its Keystone XL pipeline, TransCanada (NYSE:TRP) is also considering getting involved in the oil-by-rail movement. So, why isn't the government moving forward with tighter regulations until 2015? Tune in to the short clip below to find out.

2015 is a ways away. Don't wait until then to start investing