Railroad Stocks Could Get Hurt By The Keystone Pipeline
Yesterday, the House Republicans pushed through a bill Wednesday to bypass the president to speed up the approval of the Keystone pipeline. The oil pipeline stretches from Canada to Texas. At this time, most of the energy being transported is done by the railroads. The 1,700-mile pipeline would travel though Montana, South Dakota, Nebraska, Kansas and Oklahoma on its way to refineries in Houston and Port Arthur, Texas. This news is certainly a negative for the leading railroad stocks.
Some leading railroad stocks that are trading sharply lower today include Kansas City Southern (NYSE:KSU), CSX Corp. (NYSE:CSX), Union Pacific Corporation (NYSE:UNP), and Norfolk Southern Corp (NYSE:NSC). It is still important to note that President Obama rejected the use of the pipeline because of environmental fears.