• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 12 hours Reality catching up with EV forecasts
  • 17 hours A Somewhat Realistic View of the Near Future for Electric Vehicles Worldwide
  • 1 day "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 11 days US Oil Independence is a myth and will always be a myth
  • 7 days The Federal Reserve and Money...Aspects which are not widely known
  • 11 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 15 days Natural gas price to spike when USA is out of the market
  • 14 days "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 15 days *****5 STARS - "The Markets are Rigged" by The Corbett Report
U.S. Gasoline Prices Continue To Climb

U.S. Gasoline Prices Continue To Climb

Gasoline prices continue to climb…

Canada Is Producing More Oil Than It Can Handle

Western Canada is producing 365,000 bpd more crude oil that current pipeline capacity can handle, a new report from the National Energy Board has revealed.

According to the authority, as of September this year, Western Canada produced a daily average of 4.30 million barrels of crude, while pipeline capacity stood at 3.95 million barrels per day.

ADVERTISEMENT

Alberta, the largest oil producer in Canada, has turned to oil trains to offset the pipeline capacity shortage, and last month Premier Rachel Notley announced that the province will buy an additional 120,000 bpd in oil train capacity, to begin operating next year. It will reach full capacity in 2020.

ADVERTISEMENT

Oil-by-rail shipments are already at a record high: in October, NEB said, these averaged 327,229 barrels per day, up by over 21 percent from the 269,829 barrels per day transported by rail in September. Although some familiar with the industry argue that shipping oil by rail is not as expensive as it may seem at first glance because the heavy Canadian crude does not need as much diluent as it would to be shipped via a pipeline, the current arrangement is not optimal according to the Albertan government.

This prompted Premier Notley to impose obligatory production cuts effective January 2019 and totaling 325,000 bpd until the excess oil in storage is cleared. The cuts will be reviewed on a monthly basis, and once the overhang is gone, they will be reduced to 95,000 bpd, to remain in force until the end of 2018. The glut clearing is estimated to take no more than three months.

Meanwhile, troubled producers are being late with their municipal tax payments and some are even foregoing these payments, which has so far resulted in losses in the tens of millions, according to a report by the Globe and Mail, which has created tensions between the industry and municipalities.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

ADVERTISEMENT


ADVERTISEMENT


Leave a comment
  • Sheikh Yerboutti on December 28 2018 said:
    You big government apparatchiks really know how to run businesses. Too bad about the taxes though. Oh well, you called the tune.

    Next up: government has to cover the payroll of "troubled producers."

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News