In September, many of the major railroad stocks hit new all-time highs.
Investors Business Daily attributed much of the increase to the business of moving oil-by-rail.
While the majority of the oil moving by rail has been fracked light sweet crudes from places like the Bakken and Eagle Ford shale basins, the railroads are telling investors that to keep increasing profits they are looking to expand the business of tar sands by rail.
This past week, the Wall Street Journal reported Canadian Pacific’s chief operating officer Keith Creel’s optimistic position about the growth prospects of moving tar sands by rail.
“The growth is shifting from the light sweet Bakken crude which is the more volatile and sensitive, to the heavy crude in northern Alberta,” Creel said. “It’s safer, less volatile and more profitable to move and we’re uniquely positioned to connect to the West Coast as well as the East Coast.”