Random Note on Cost of Shipping By Pipeline

This is an interesting story on numerous levels.

Data points:

• Mobil Pipeline, a unit of Exxon Mobil Corp reversed its Pegasus pipeline to carry crude - mostly Canadian - from Illinois to the U.S. Gulf
• Mobil requested permission to set rates rather than letting market set rates
• series of FERC reversals; bottom line -- FERC agrees with Mobil
• Mobil raises rate (tariff) from $1.57 to $5.09/bbl
• the case has implications for others, particularly Delta Airlines moving crude oil to northeast