• 1 hour Renewables in US Set for Fast Growth
  • 4 minutes Get First Access To The Oilprice App!
  • 13 minutes Oil prices forecast
  • 1 hour Chinese FDI in U.S. Drops 90%: America's Clueless Tech Entrepreneurs
  • 17 hours Is Natural Gas Renewable? I say yes it is.
  • 48 mins Socialists want to exorcise the O&G demon by 2030
  • 19 hours Making Fun of EV Owners: ICE-ing Trend?
  • 23 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 2 hours Good Marriage And Bad Divorce: Germany's Merkel Wants Britain and EU To Divorce On Good Terms
  • 18 mins Duterte's New Madness: Philippine Senators Oppose President's Push To Lower Criminal Age To 9
  • 9 hours Cheermongering about O&G in 2019
  • 9 hours North Sea Rocks Could Store Months Of Renewable Energy
  • 18 hours Emissions from wear of brakes and tyres likely to be higher in supposedly clean vehicles, experts warn
  • 1 hour *Happy Dance* ... U.S. Shale Oil Slowdown
  • 13 hours Oceans "Under Fire" Of Plastic Trash
  • 44 mins Japanese Refiners Load First Iran Oil Cargo Since U.S. Sanctions
  • 1 day Orphan Wells
The Tech Transforming The Energy Industry

The Tech Transforming The Energy Industry

Decentralized energy solutions are sprouting…

Israel Aims To Become An Energy Export Hub

Israel Aims To Become An Energy Export Hub

A new sub-sea natural gas…

Alberta PM Asks Ottawa For More Oil Trains

oil train

The Premier of Alberta, Rachel Notley, has called on the federal government in Ottawa to supply more rail cars to transport the province’s rising crude oil production to refineries as part of efforts to tackle an uncomfortably deep discount between Western Canadian Select and WTI resulting from the lack of pipeline capacity.

CBC quoted Notley, who spoke after a meeting with Albertan energy industry representatives, as saying "The best and only long-term solution to the price gap is building new pipelines. In the meantime, however, we need to take a close look at the tools available to us to close the differential where it's feasible. Like, for example, increasing the efficiency and availability of rail capacity to move our products.”

As of this morning, the discount of Western Canadian Select —the benchmark price of oil from Canada’s oil sands delivered at Hardisty, Alberta—to West Texas Intermediate had extended to about US$52 a barrel—the latest stage in a development that has hammered Canadian producers’ margins thanks to the pipeline capacity shortage combined with higher railway transportation costs.

Meanwhile, Chinese refiners are taking advantage of the low price. They purchased 1.58 million barrels of heavy Canadian crude oil for loading in September, up by nearly 50 percent compared to the 1.05 million barrels they imported from Canada in April, Bloomberg reported earlier this month, and no wonder. In a context of rising prices, a $50-per-barrel discount is more than a good bargain, especially since Chinese refineries need a lot of heavy crude.

For Canadian producers, however, this discount is a form of punishment, Notley said, and it will send ripples that will reach the federal budget, too. "If it continues, it is going to have a significant impact, frankly, on Ottawa's bottom line," the Alberta PM, who has been very active in defending the province’s oil industry, also said.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • ED Enron on October 23 2018 said:
    You may want to edit a technicality on the article. The leader of a province is a Premier. Premier Rachel Notley is the proper title. Prime Minister is the title of the elected leader of the country whom would be Justin Trudeau.
  • Sohan Kumar on October 23 2018 said:
    Alberta has Premier for the Province. Your article says Prime Minister of Alberta. Just a minor typo error. Thank you.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News