Alberta Oil Sands Firms Offer to Ship by Rail To Produce Beyond Limits

@het.co 5:27 PM

​Oil Sands Firms Offer to Ship by Rail If Output Limits Ease

• There’s high demand for Canadian heavy oil on the U.S. Gulf Coast amid declining shipments from Venezuela and Mexico,
• Alberta's production curtailment program (now @ 175,000 barrels per day) boosted the price for their crude so much that it was no longer economical for refiners to take deliveries of it by more-expensive rail
• This caused a large portion of Alberta’s rail-shipping capacity to be shut in
• 260,000 barrels of daily rail shipping capacity sitting idle (Genscape data) - more than the curtailed volumes
• Canada’s oil-sands producers are proposing to increase production beyond their limits if they commit to shipping that excess crude by rail. Alberta Govt hasn't made a decision yet