TransCanada Corporation (USA) (TRP), Enbridge Inc (USA) (ENB): Will Pipelines Make a Comeback After the Quebec Tragedy?

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An appropriate reaction?
The market’s reaction to railroad companies hasn’t been favorable. Canadian National Railway (USA) (NYSE:CNI) traded down today by 0.6%, while Union Pacific Corporation (NYSE:UNP) lost more than 0.7% of its market value. Clearly, the markets took Saturday’s accident seriously. However, with so much crude oil ready for cross-country trips, railroad companies are unlikely to be affected in the grander scheme of things, at least in the near term.

Foolish thoughts
Clearly, a railroad oil spill has far more devastating consequences compared with a pipeline spill. Additionally, a recent study by the U.S. National Academy of Sciences concluded that diluted bitumen flowing through the Keystone XL pipeline would not contribute to more pipeline corrosion compared with conventional heavy crude. Pipelines definitely have a strong case going forward.

The article Will Pipelines Make a Comeback After the Quebec Tragedy? originally appeared on Fool.com.

Fool contributor Isac Simon has no position in any stocks mentioned. The Motley Fool recommends Canadian National Railway.

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