But producers aren't getting anything like the prices, or margins, of foreign suppliers, due to a shortage of pipeline capacity, according to the Congressional Research Service.
Pipelines would deliver oil to refiners for $5/barrel but producers are paying $10 to $20 per barrel to move it out by rail. Rail is more flexible, with shorter contracts. Rail is also faster, meaning faster payments. Rail currently has over 60% of the market, according to the North Dakota Pipeline Authority.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV