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Strategies & Market Trends : Value Investing
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To: Ditchdigger who wrote (48385)6/20/2012 7:30:00 PM
From: E_K_S1 Recommendation   of 78748
 
Hi Ditch -

When I was looking at rail options to move NG & Oil it did make a lot of sense even w/ the premium one might pay per barrel of oil (I believe it was as high as $5/barrel for rail transportation vs pipeline). I discovered that there were these new NG rail cars that were designed to carry compressed natural gas. These same cars were being developed to provide the trains fuel too which almost halved the cost of traditional diesel fuel. So now, using rail to move NG becomes an economical option so rail is not exclusive to only oil.

I am not too sure what the refinery does to the NG but if it is treated at the gathering station before it is compressed, the new NG rail cars could be loaded at the head end of the gathering treatment plants and put alongside the oil tanker cars for rail transport to the U.S. coast refining hub.

In fact, the CNG rail cars could theoretically be dropped off at different terminals so compressed NG could then be trucked to land based NG filling stations. CNG can now be transported by both rail and truck too. So if they do not want to export this fuel (our Gov is not providing NG export licenses), then why not use NG as the primary fuel to transport domestic oil in tanker cars?

The overall value proposition begins to make sense for everybody.

Here is what I posted late last year:
Message 27789094



Here is an LNG powered Locomotive puling LNG fuel tank.

LNG locomotive conversion



EKS
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