• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 1 hour The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 9 hours Confirmed: UN Expert Urges Probe Of Saudi Prince Over Khashoggi Killing
  • 6 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 7 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 2 hours Pioneer CEO Said U.S. Oil Production would be up to 15 mm bbls/day NOW if we had the pipelines. Permian pipelines STARTING Q3
  • 1 hour Emissions Need To Be Halved To Avoid 3C Warming
  • 7 hours The Plastics Problem
  • 4 hours Coal Boom in Asia is Real and a Long Trend
  • 38 mins The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 16 mins US to become net oil exporter in November: EIA
  • 39 mins Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 5 hours Trudeau approves Trans Mountain Pipeline
  • 10 hours Hydrogen FTW... Some Day
  • 8 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
OPEC Aims For $60-$70 Oil

OPEC Aims For $60-$70 Oil

Equatorial Guinea’s Oil Minister Obiang…

Alberta Turns To Trains To Move Its Crude

Crude oil

Alberta will discuss shipping more crude oil by rail across province borders with railways companies, Energy Minister Margaret McCuaig-Boyd told media in Calgary. The talks will begin tomorrow, with executives from the biggest oil producers in Alberta and the two biggest railways—Canadian Pacific Railway and Canadian National Railway.

Alberta’s oil producers are struggling to transport their crude as production increases while pipeline capacity remains unchanged amid wide-scale opposition, notably in neighbor British Columbia. There is also a shortage of oil train capacity as railway operators curbed their exposure to the oil industry a few years back when there was ample pipeline capacity.

Now they are reluctant to dedicate more oil trains to Alberta’s oilsands producers, but the producers are equally reluctant to commit to long-term contracts, which the railway operators insist on: pipeline transport is much cheaper than railway, and producers already have to deal with a serious discount for the crude to WTI because of the transport bottlenecks.

These bottlenecks are the reason Alberta has been fighting to get the Trans Mountain pipeline expansion built despite the staunch opposition of B.C.’s government. The province is even ready to buy the project from Kinder Morgan to make sure its oil producers have a way of transporting their crude as production is set to grow further in the medium term.

Related: Russian Oil Turns Its Back On Its Biggest Customer

British Columbia is equally determined in its fight against the pipeline, arguing it will put its environment at greater risk of spills. It has now approached the provincial Court of Appeals with a question about whether it can put the brakes on the federally approved project on the grounds that it has jurisdiction over the protection of its environment.

It is somewhat ironic that by opposing the Trans Mountain pipeline expansion, B.C. is inadvertently encouraging the transportation of oil by rail, which is a much riskier method. It was a rail train that caused the worst rail disaster in Canadian history.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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