HOW TO PLAY IT-Predicted US oil glut a boon to those who move it

Sun Nov 18, 2012 6:59am EST
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* Railroads, new pipelines vital to keep crude flowing to market

* Refining exports thrive on abundant U.S. oil, natgas

* Top investor sees 800,000 U.S. jobs from energy boom

* Cheaper fuel poses challenges for nascent clean tech industry

By Braden Reddall

Nov 18 (Reuters) - Railroads, pipeline companies and refiners stand to do especially well from a U.S. drilling bonanza that is upending the energy trade balance for the world's largest economy.

An anticipated surge in U.S. oil output to the highest levels in the world would give a boost to those who move crude to where it can be turned into finished products and even shipped abroad.

Shares of pipeline companies Kinder Morgan, Williams Cos Inc and Energy Transfer Equity have slipped in recent weeks. But all three are up sharply since Kinder struck a deal to buy rival El Paso in October 2011, which underlined the importance of their pipes to the U.S. shale boom.

The International Energy Agency (IEA) made a stir last week by saying U.S. oil output could top that of Saudi Arabia and Russia by 2017, raising the prospect of e n ergy self-sufficiency for the biggest oil consumer on the planet.   Continued...