Another refiner that impresses me is Phillips 66 (NYSE:PSX). The company has acknowledged that until pipeline projects come on line, rail is the easiest and most cost-efficient way to transport crude oil to its refineries. In the fourth quarter of 2012, about 67% of the company’s crude slate had been the cheaper variants — either heavy crude from Canada and Latin America, or the discounted WTI. This has helped the company immensely; its stock has risen a whopping 85% in the last 12 months.
Finally, until the Keystone XL pipeline comes on line — or gets scrapped, for that matter — Canadian National Railway (USA) (NYSE:CNI) will remain the specialist operator in transporting crude oil from Alberta’s oil sands. In the last 12 months, the company’s stock has risen 16%. The best part? A surge in oil production can easily be accommodated. With Enbridge’s Northern Gateway pipeline rejected by the British Columbia government, Canadian National Railway (USA) (NYSE:CNI) should enjoy the monopoly in transporting crude for the foreseeable future.
Whether the Keystone XL pipeline project gets abandoned or not, these companies look like solid long-term bets. Energy investors must watch these stocks closely.
The article Who Wins From the Keystone Controversy? originally appeared on Fool.com and is written by Isac Simon.
Fool contributor Isac Simon has no position in any stocks mentioned. The Motley Fool recommends Canadian National Railway.
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