The United States has large oil refineries not far from Houston, Texas and since the oil is in the middle of the country it makes logistical sense. The refineries are also on the East Coast and for the past years of the Bakken production in North and South Dakota most of the oil has been going by rail car to refineries on the East Coat. The pipelines, the President has authorized, will move the oil to the refineries in Texas, which means the East Coast refineries are now importing oil. According to Luccia Kassai of Bloomberg News the US Energy Information Administration reported 884,000 barrels of oil  a day was imported from Angola, Nigeria and Brazil. At the moment it is good thing because the cost of imported oil is less than domestic oil. The US as a whole is energy independent but as the economy continues to improve it still needs imported oil.

Linking to dividend paying stocks, once the pipeline is built the Bakken oil will be less expensive to move by pipeline which will slow rail car deliveries. The slow down of rail cars means the railroads earn less money, but the pipeline companies and oil refineries make more money. Changes whether they are physical changes (pipelines) or technological happen all the time and that is why it is a credit to companies who consistently can be profitable and raise their dividends for years. Sometimes technology will compensate by driving costs down or enabling companies to concentrate on what really makes them money, but change is a constant.

There at more questions than answers, till the next time – to raising questions.