Will Keystone XL Disrupt Railroad Companies?

Get a handle on what more pipeline capacity means to Canada’s rail co’s.

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The Motley Fool

With a decision expected on the northern leg of TransCanada‘s (TSX:TRP) Keystone XL pipelines in the next year, investors are focused not only on crude oil producers but also on the railroad companies who have experienced a significant increase in crude-by-rail shipments. With over 800 thousand barrels of oil per day capacity, could the Keystone XL pipeline take a bite out of Canadian Pacific (TSX:CP,NYSE:CP) and Canadian National‘s (TSX:CNR,NYSE:CNI) bottom line?

In the following video, energy analysts Joel South and Taylor Muckerman discuss the markets each company is serving and determine the long-term effects if Keystone XL is approved.

The Canadian rail companies are 2 of this country’s finest businesses.  The Motley Fool’s Special Free Report3 U.S. Companies That Every Canadian Should Own” profiles 3 of the best that our neighbour to the south has to offer.  To download this report at no charge, simply click here.

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Fool contributors Joel South and Taylor Muckerman have no position in any stocks mentioned at this time.  David Gardner owns CN Rail.        

 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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