Posted on 10/01/2014 7:23:30 AM PDT by thackney
The oil and railroad industries are urging U.S. regulators to allow them as long as seven years to retrofit existing tank cars that transport highly volatile crude oil, a top oil industry official said Tuesday. The cars have ruptured and spilled oil during collisions, leading to intense fires...
...jointly asking the Department of Transportation for six to 12 months for rail tank car manufacturers to gear up to retrofit tens of thousands of cars and another three years to retrofit older cars....
...also want three years after that to retrofit newer tank cars manufactured since 2011, known as "1232 cars,"...
In July, the transportation department proposed that older cars be retrofitted within two years....
Appreciate your post.
I've been long on Greenbrier sin e it was $18/sh. Stock price down nearly $7/sh this on yesterday's Press Releases from API and ARR. Like all the other dips, it has allowed me another opportunity to accumulate. Guidance has GBX at $85... 4Q earnings report due at end of this month. GBX has treated me well, your milage may vary.
Greenbrier, UTLX, Trinity, American Railcar are a couple.
The problem is the market is so volitile... that on a day by day basis capital ivestment decisions change based on the WTI/Brent Light Sweet Crude spread. Rail is there already and transload sites require very little (comparitive to a 1500 mile pipeline) infrastructure to have up and running in as little as 3 weeks... 1 week with an existing, underutilized siding.
Many oilmen want immediate NOW NOW NOW ways to play the spread... they are not waiting for piplines.
Union Tank Car for one. I’d have to look up the other ones. Most of the railcars are built and sold to leasing companies, so the ID numbers on them
are hard to track back to the manufacturer of the car.
Oh, and Trinity, Greenbrier, Railcar America, and others. The oil industry also purchases cars directly, as pointed out earlier by thackney. Tankcars and covered hoppers (for grain and dry commodities) are a really hot sought after item right now. The railroads went through a bad spell during the recession, and now we have to play catch up, and we have more work than we can handle right now.
#8 which I believe should have been your #1 Failure to chock the wheels. And #9 Failure to properly set the manual brakes on a sufficient number of cars.
RE: GBX... basically, as Laz would say, “I’d Hit It”.
Seriously, I have bought on dips since January 2013, timing every one just about perfectly... and I am up... a lot.
it all comes under the banner of not enforcing existing RR operating rules...
Keystone XL won't pipeline the sand to the oilpatch.
Also if you do not know if you will ever be able to get permits for a pipeline, there goes your ROI calculation.
The most inefficient way would be truckloads of barrels. By rail, the oil is getting to refineries what would be using imported crude, and having the ability to change delivery points with an order versus building a different pipeline just might be more efficient in its own way.
What really suffered was telephone (cell). It used to be the static was a problem, but digital packeting makes sure that background noise makes a bloody hash of any communications from an environment that isn’t quiet, not to mention the burst of static at the termination of an analog connection at least saved you talking into a dead line...
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