This Article is part of the Tar Sands Reporting Project special report See the full report

Kinder Morgan billionaire sees big fortunes in oil by train and tanker

Kinder Morgan CEO says pipelines, including B.C.’s Trans Mountain expansion, not enough to move “tremendous” surge in Canadian and U.S. oil.

Kinder Morgan CEO Richard Kinder
One of the richest men in America is boasting about the massive profits to be made from the transport of “tremendous” new volumes of oil from Alberta tar sands and U.S. shale oil deposits. 
Kinder Morgan’s reclusive billionaire CEO Rich Kinder said his company’s pipelines, including the proposed Trans Mountain expansion project through British Columbia, are not enough to handle this surge of new oil, measured in millions of barrels per day.

Consequently, he told analysts last week on a teleconference call that his company is investing a combined $1.1 billion on a new oil tanker fleet and a crude-oil-by-rail terminal near Edmonton, to get the oil to market.

“We’re primarily a pipeline company of course… but there are reasons why pipelines don’t satisfy everybody’s needs.  An outgrowth of that is obviously crude by rail.  Another outgrowth of that is the Jones Act,” said Kinder, from Houston, Texas. 

The “Jones Act” is a reference to the transport of oil and gas by ocean tanker. It’s not clear if the tankers would move petroleum out of Burnaby, or simply U.S. ports.  

Kinder Morgan stock pumped

Kinder said for an “old Texas oil man” like himself, he’s never seen brighter days ahead for oil transport.  

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