Please ensure Javascript is enabled for purposes of website accessibility

Oil Companies Get Busted by Regulators for Misclassifying Transports

By Taylor Muckerman and Joel South – Feb 9, 2014 at 2:05PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

By miscategorizing oil shipments, three oil companies put railroads at serious risk.

Source: flickr.com

Based on the fact that rail operators are held 100% liable for any incidents after taking possession of the goods they are transporting, it makes sense that oil companies delivering the goods should at least be held accountable prior to that. It appears that Hess Corporation (HES 0.45%), Marathon Oil (MRO -1.16%) and Whiting Oil & Gas could be the early poster children for this. All three companies have been accused of mis-categorizing oil bound for rail loading stations. Addressing issues like this at the well head could go a long way toward preventing disasters like we have seen lately. Check out our short clip below to find out why rail companies like Canadian National Railway (CNI -0.49%) should be happy about this.

Warren Buffett understands the future of crude-by-rail, but that's not all

Warren Buffett has made billions through his investing and he wants you to be able to invest like him. Through the years, Buffett has offered up investing tips to shareholders of Berkshire Hathaway. Now you can tap into the best of Warren Buffett's wisdom in a new special report from The Motley Fool. Click here now for a free copy of this invaluable report.

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

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Berkshire Hathaway and Canadian National Railway. The Motley Fool owns shares of Berkshire Hathaway. 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.

Stocks Mentioned

Whiting Petroleum Stock Quote
Whiting Petroleum
WLL
Berkshire Hathaway Stock Quote
Berkshire Hathaway
BRK.B
$316.15 (0.10%) $0.31
Hess Stock Quote
Hess
HES
$144.02 (0.45%) $0.65
Marathon Oil Stock Quote
Marathon Oil
MRO
$29.74 (-1.16%) $0.35
Canadian National Railway Stock Quote
Canadian National Railway
CNI
$127.83 (-0.49%) $0.63

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.