{"id":31264,"date":"2018-02-20T07:41:45","date_gmt":"2018-02-20T12:41:45","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31264"},"modified":"2018-02-20T07:41:45","modified_gmt":"2018-02-20T12:41:45","slug":"canadas-oil-crisis-continues-to-worsen","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31264","title":{"rendered":"Canada\u2019s Oil Crisis Continues To Worsen"},"content":{"rendered":"

Canada\u2019s Oil Crisis Continues To Worsen<\/a><\/h3>\n\"Enbridge<\/picture>\n
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Canadian oil producers can\u2019t get a break. First it was the pipelines \u2014 there are not enough of them to carry the crude from Alberta\u2019s oil sands to export markets. This pipeline capacity problem has been forcing producers to pay higher rates for railway transportation, which has naturally hurt their margins in no small way. Now, there is a shortage of rail cars as well.<\/p>\n

The situation is going from bad to worse for Canadian producers who can\u2019t seem to catch a break. Canadian railway operators are fighting harsh winter weather and finding it hard to supply enough cars to move both crude oil from Alberta and grain from the Prairies.<\/p>\n

The harsh weather is just the latest factor, however. Before that, there was the 45-percent surge in demand for rail cars from the oil industry, Bloomberg reports<\/a>, citing Canadian National Railway. The surge happened in the third quarter of last year, and Canadian National\u2019s chief executive Ghislain Houle says that it took the company \u201ca little bit by surprise.\u201d This surprise has led to \u201cpinch points\u201d on the railway operator\u2019s network, further aggravating an already bad situation.<\/p>\n

As a result, crude oil remains in Alberta and prices fall further because Alberta is where the local crude is priced, Bloomberg\u2019s Jen Skerritt and Robert Tuttle note. In fact, Canadian crude is currently trading at the biggest discount to West Texas Intermediate in four years, at $30.60 per barrel. The blow is particularly severe as it comes amid improving oil prices elsewhere driven by the stock market recovery.<\/p>\n

The light at the end of the tunnel is barely a glimmer. Despite federal government support for the Trans Mountain pipeline expansion project, it is still facing obstacles that may result in it never seeing the light of day.<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Canada\u2019s Oil Crisis Continues To Worsen Canadian oil producers can\u2019t get a break. First it was the pipelines \u2014 there are not enough of them to carry the crude from Alberta\u2019s oil sands to export markets. This pipeline capacity problem has been forcing producers to pay higher rates for railway transportation, which has naturally hurt […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[2536,1642,103,18723,13719,5332,781],"class_list":["post-31264","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-alberta-oil-sands","tag-bitumen","tag-canada","tag-canadian-national-railway","tag-irina-slav","tag-oilprice-com","tag-tar-sands"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31264"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31264\/revisions"}],"predecessor-version":[{"id":31265,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31264\/revisions\/31265"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}