As always...JUST FOLLOW THE MONEY....
Canadian Oil and the Keystone Pipeline
Burlington Northern Santa Fe(BNSF) Railroad owns all of the rail lines in the US connecting to western Canada, and they haul 80%+ of the crude from Canada to the midwest and Texas, or charge other Short Line railroads a fee to use their tracks.
BNSF charges $30 per barrel to haul the oil, where the Keystone would cost $10 by the State Departments own estimates.
BNSF is owned by Berkshire-Hathaway whose chairman is Warren Buffet.
In the last 2 election cycles, Buffet gave extensively to democrat causes and candidates, including $40K+ to Obama in 2012. He also bundled and hosted numerous fundraisers for Obama.
If anyone here believes the pipeline isn’t being blocked by Obama on Buffets behalf, you’re nuts.
Buffet could stand to lose $2B+ a year if the pipeline goes in, and he makes the same amount every year it’s delayed.
He's also good at parroting all the Democrat talking points. He's a better rent seeker and tax avoider than an investor.
How much oil will that pipeline deliver vs. how much oil needs to be delivered.
I don’t think the pipeline will handle all of the oil. A lot of it will still be shipped by rail even after the pipeline is built.
I don’t know the volume that a pipeline can deliver but I do know the pipeline will not get the oil to every company that uses it.
My point is bring the oil down by pipeline and you will have more business for the railroad delivering the oil to the smaller industries that use oil, making money.
More specifically, or generally, the railroad is going to make a lot of money when the pipeline is built and more oil is delivered to the gulf region.
The railroad is gonna get theirs either way.