| Submit your comments on this article |
| Economy |
| Why the Keystone XL is not so key - Investors Business Daily |
| 2014-02-23 |
| Posted by:Besoeker |
| #5 Warren and Trinity Industries Inc. (TRN) have been doing very well of late. NYSE: TRN |
| Posted by: Besoeker 2014-02-23 17:25 |
| #4 Rambler, agree that the railroads are fighting regulations that could be forced upon them by the gov't, but they are also seeking better rules that they can live with and better police themselves. There is a huge disagreement internally about whether the DOT111 cars can be upgraded to the 112 or 114 standards on a cost effective manner. Also be advised that Warren Buffet purchased a car building company that is separate from the BNSF. |
| Posted by: USN, Ret. 2014-02-23 17:17 |
| #3 Not only that, USN, but crude must be diluted (28%) to be able to be pipelined (current Trains magazine). To pipe it into railcars take 17% dilution, and if they could get the track to the wellhead, it could go straight into railcars with no dilution. At unloading, the crude would need to be heated to 200 degrees, but many tank cars have steam heat coils that can do that. The latter is far more efficient than piping an extra 28% that you don't know what to do with after you extract the crude. I hate to see the enviro-weenies win one (killing Keystone), but it serves as a convenient distraction for the rest of the transportation of crude oil. |
| Posted by: Bobby 2014-02-23 15:51 |
| #2 And Warren Buffett's railroad is fighting the new safety regulations tooth and nail. |
| Posted by: Rambler in Virginia 2014-02-23 15:50 |
| #1 From a railroading blog I read, oil shippers are growing fonder of rail's flexibility to move product where the best profit may be realized, despite higher transportation costs (rail vs. pipeline) the end numbers are better. There are 2 major constraints; tank car safety regulations and what to do with the older DOT111 cars and track capacity. BNSF is pretty well tapped out for more oil unit trains headed to the west coast and CSX/Norfolk Southern has not a lot of capacity available either. And environmentalists and other activists are pressing regulators to place a moratorium on new refineries and more trackage to existing ones, as well as the tank car safety issues. |
| Posted by: USN, Ret. 2014-02-23 02:35 |