Pipeline's End Puts US at Disadvantage: Union Pacific CEO

The end of the Keystone Pipelineproject puts the U.S. at a competitive disadvantage and was a personal disappointment to the chief executive of railroad Union Pacific.

"My concern is ultimately what does it do for competitiveness in America," Chief Executive Jim Young told CNBC Thursday a day after the Obama administration killed the TransCanada pipeline, which would've carried oil from western Canada to Houston.

The UP executive added, "I have to think about my customers and their ability to compete, and obviously energy costs are a huge piece of that."

"For me, the more competitive they can be, the more business I'll haul," he said. "There's another side of this: We're the largest consumer of diesel fuel in the United States" at about 1.2 billion gallons a year, and keeping energy costs "reasonable" benefits the railroad, too.