Market Matters Blog
Katie Micik DTN Markets Editor

Friday 01/31/14

Logistics Still a Mess on Rivers, U.S. and Canadian Rails
Just as rail cars began moving, another winter weather system brought it all to a halt. The freight situation in Canada, which is worse than in the U.S., could have long-term financial ramifications for the industry.[Read Full Blog Post]
Posted at 11:25AM CST 01/31/14 by Mary Kennedy | Post a Comment
Comments (7)
It is the oil moving east that has completely screwed up the rail system. BNSF has made the choice of new valuable oil shipments over all of its existing customers and are blaming the weather. Buffet better step in or government intervention will.
Posted by Robert Pyle at 1:07PM CST 01/31/14
And then, through executive action, the government can make the rivers melt the ice and rise to make it easier to ship by barge. Do you really have an idea of what private enterprise is all about?
Posted by CRAIG MOORE at 10:41AM CST 02/03/14
why would Buffet step in he is making money shipping oil. He is a supporter of Obama so delaying the Keystone Pipeline is in both of their interests.
Posted by Doug Milbrath at 11:11AM CST 02/03/14
Although CN and CP are blaming the bad weather for poor rail service oil cars continue to roll down the tracks. Although not an immediate fix, the approval and completion of the Keystone and Northern Gateway pipelines would ease a lot of the current rail problems in western Canada and the north-central US. Our record crop has turned into a nightmare, most of it will sit in the bin until 2015 or 2016.
Posted by Bruce Neufeldt at 12:10PM CST 02/03/14
Good for the Canadian for having a bumper crop. I do agree that it is the oil that is taking up all the track time. I do hope the pipe lines will get approval soon. It will help with the truck traffic as well.
Posted by Doug Milbrath at 4:16PM CST 02/03/14
Look at history. When was the last major rail, water or energy expansion? The "Not In My Backyarders" and Enviros put a halt to any proposal. Doesn't matter if it is oil, coal, gas, grain trains, power lines or pipelines. Open a new shopping mall, the same will trample each other for the bargains, without regard of energy load of the infrastructure. The U.S. can export coal, gas or oil, but can't convert the stored BTU's of fossil fuel for our own use. Export it overseas, then import it back in along with the polluted air in the atmosphere. How about building oil and gas pipelines or building a coal power plant in Iowa, Mn. S. Dak. or Wisc.? How about processing our own natural gas in the Central States for plant nutrition needs? Short on Electricity, Propane and nautural gas. Blame it on the Barges, Farmers, Oil Company or Railroads. It couldn't be waste of energy by everyone who turns up a thermostat or drives to the store a couple times a day. Solar and wind help, but are not the answer. Leave a flashlight outside in this country overnight, the batteries are dead from the cold.
Posted by Bonnie Dukowitz at 7:11AM CST 02/04/14
Economics is really all about incentives. Should I produce another crop? Should I drill another oil well? If the incentive is good enough, we will. Sometimes we hope it will be good enough. The governments have a responsibility to govern (make sure the engine does not run too fast) the speed at which the non-perishable, non-renewable resources are extracted and consumed. Seems to me in the overheated energy economy, where fortunes are made in a short period of time, the royalties paid has not kept up with the profit potential to keep the engine running at a manageable speed. In other words, there are a few getting very wealthy -oil companies, railroads, etc. - by selling off our storehouse of non-renewable resources.
Posted by Glenn van Dijken at 10:59AM CST 02/05/14
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