Booming oil production extracted from numerous shale plays in the United States is outpacing pipeline expansion, leaving high-production companies, like those in the Bakken, struggling to find pipeline takeaway capacity. The lack of takeaway capacity is causing regional U.S. oil price discrepancies as a result. In this video, Motley Fool energy analyst Joel South tells us about a new deal from Phillips 66 in which the company will move oil to the East Coast using rail carts, supplying its East Coast refiner in Trainer, Penn., with cheaper West Texas Intermediate benchmarked crude. 

While there are a lot of great plays to make in the energy sector right now, we here at the Motley Fool want this to be the year your portfolio takes off across the board. Make sure you start 2013 with a bang and get the inside scoop on what Motley Fool superinvestor David Gardner will be buying this year. He's crushed the market in his Stock Advisor and Rule Breakers portfolios for years, and now I invite you to a personal tour of his flagship stock picking service: Supernova. Just click here now for instant access.

The article Phillips 66 Moving Cheap Oil to East Coast Refiner originally appeared on

Joel South has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Kinder Morgan. The Motley Fool owns shares of Kinder Morgan. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Increase your money and finance knowledge from home

Forex for Beginners

Learn about trading currencies and foreign exchange transactions

View Course »

Introduction to ETFs

The basics of Exchange Traded Funds and why ETFs are hot.

View Course »