Canada Crude-by-rail boost due lack of pipeline capacity

Canada Crude-by-rail boost due lack of pipeline capacity


Canadian Pacific Railway (CP) sees shipments of crude by rail “coming alive a little bit,” Chief Marketing Officer John Brooks said, Reuters reported.

Despite many traders anticipating an increase in crude by rail volumes in next year, Canadian railway executives remain cautious after they were forced to cut prices back in 2015 use to the crash in global oil prices.

R - Canadian Pacific eyeing

John told a Toronto transportation conference: “The energy sector is really getting interesting,” as he noted demand for shipping frac sand. In October CP reported a positive Q3 profit on shipments of crude oil, coal and potash.

Canada’s export pipelines are already running close to capacity so the underused rail loading terminals, which were constructed during the crude-by-rail boom of 2014, are an attractive alternative transport method for newly sourced crude.

A further boost for crude-by-rail was TransCanada Corp’s scrapping of its $12bn Energy East pipeline. More evidence of improvements in the industry was shared by Gibson Energy who said in its Q3 results that its Hardisty rail terminal has seen a growth is use

27th Nov 2017

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