Recent news articles stating that Kinder Morgan Energy is having a tough time gaining customers for a proposed crude oil pipeline between west Texas and California because of RR competition is a Big win for GEL and it's crude oil RR loading facility ramping up in Wink,TX. Add in the RR facility GEL is adding in Powder River,WYoming,, shipping crude to California via the Union Pacific, and we have another barge line type opportunity shaping up for GEL. With trucks,barges,and tankcars working together to haul crude GEL is kind of becoming the FedEX of oil shipments!
i saw this article and thought the same thing.
pipes not the place to be now imho.
although rr.s over long distance more expensive quicker and cheaper to build spurs exactly where u need delivery and not as much red tape.
also exports heating up also. thats y i still hold in size gel,mwe,and ngls.
the future right there even though i was bloodied this week .i even added more vnr couldnt pass up their yield or reserves after they put it on sale this week.
still ahead in clmt which is more of a refining play and for the first time losing in glp.
the mlp revolution still intact imho.
as for this repositioning which is all im hearing on tv repositioning where.
bernanke may taper bond purchases but he aint raising rates for awhile.
keep the faith.this shale revolution and the new age transportation is real.
we have our winners.
my 550bmw be here within 2weeks.
enjoy reading your informative notes as always
Hi,Dreiser...The thought of you and your 550 is a good one..winners in MLPs and autos are a joy! Still impressed at how GEL is ramping up operations on multiple fronts..from a few barges to a very sizable fleet....a relatively small RR presence to a substantial operation..adding 400 RR tankcars this year is a nice bounce...and then integrating barge/RR operations at Natchez a real beauty. Distributing Alberta tar sand crude along the Gulf Coast by barge bypasses pipes,too. And it's a real win for natchez: I noted from the local papers there that GEL coming in is saving the short RR line used from abandonment. The City is delighted! We both appreciated GEL buying that small Wyoming refinery..Now, it's the refinery, a crude gathering pipeline system,trucking,and the Pronghorn RR crude oil loading facility being run together in Wyoming..and you want to guess where some of the new GEL RR tankcars will be used?! A 3,000 barrel/day refinery can sure supply low cost diesel fuel for GEL's trucks,too. Kind of like Delta buying a Philadelphia area refinery to produce jet fuel....I am intrigued with thinking where GEL will show up next...they really seem to look for profitable niches. By the way, have been nibbling at VNR,too. I like the way they are picking up reserves in diverse geographies...Good investing and good driving to you!!