Canadian Railroads > More oil from Alberta to be shipped to the US?

The Financial Post has an interesting article about the rise in resentment over what Albertans see as unfair treatment from the rest of Canada. This isn't new, but the result may be.

Alberta produces a huge amount of Canada's oil, much of which is shipped east to Ontario and Quebec. British Columbia, Alberta's neighbor to the west, has consistently blocked pipelines and attempted to throttle rail exports of oil for years. The formula for dividing oil revenues is convoluted, and works to the benefit of Ontario and Quebec. A rapidly growing populist party wants to upend that deal, and slow down oil flows both east and west. Maybe strangle their adversaries.

That leaves crude by rail. Much of it already goes to US refineries, and a growing amount goes to the US Gulf of Mexico ports and overseas. Oddly Alberta can net almost as much money as it does shipping its oil east to ON/QC. The ingredients are ripe for a big switch. Large numbers of nearly new tank cars in storage, decent capacity on US north to south rail routes, and a growing interest in Canadian oil.

For the TO literalists, nowhere does it say this will happen. But it is a way that Alberta can collect revenues while sticking it to the folks in Ottawa who are forever attacking crude oil, defending BC's obstruction, and then taking the profits. A populist party and leader, intent on overturning the cozy arrangements in the nation's capital, and an angry populace. Who knows what mischief might happen?

Folks who control tank car inventories might be the winners if these developments actually take place...

http://business.financialpost.com/commodities/energy/ending-the-alberta-transfer-gravy-train-would-add-new-dimension-to-pipeline-wars/wcm/8191aef5-75fc-47da-9746-3454c7c90f54

Lackawanna484 Wrote:
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> British Columbia, Alberta's neighbor to
> the west, has consistently blocked pipelines and
> attempted to throttle rail exports of oil for
> years.

What pipeline has British Columbia blocked? It was the federal government that recently blocked the Northern Gateway pipeline. http://www.nrcan.gc.ca/energy/resources/19184

The twinning and upgrading of the TransMountain pipeline was approved by the federal government and is set to go ahead.

And as for oil by rail shipments through B.C., those have been taking place via Vancouver to the U.S. in recent years from sources in both Alberta and Saskatchewan.

There is a new provincial government in place which is seeking to halt pipeline projects.

fredstoltz Wrote:
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> There is a new provincial government in place
> which is seeking to halt pipeline projects.

The new government is not in a position to halt the project. It is a federal matter to decide, and that decision has already been made in favour of the Trans Mountain project.



Edited 1 time(s). Last edit at 07/16/17 03:51 by railsmith.