Crude-by-rail exports fall to four-year low as economic slump frees pipeline space

Crude-by-rail exports fall to four-year low as economic slump frees pipeline space

CALGARY — Canadian exports of crude oil by rail plunged by 63 per cent in May compared with April as North American fuel demand dropped due to measures taken to control the COVID-19 pandemic.

The Canada Energy Regulator says rail shipments of oil in May fell to a four-year low of about 58,000 barrels per day, down from 156,000 bpd in April and 351,000 bpd in March.

Shipments reached a record high of 412,000 bpd in February.

Rail transportation of crude oil is considered to be more expensive than shipping by pipeline so shippers tend to use it only when pipelines are full or if the destination market offers much higher prices than can be achieved in Canada.

Western Canadian producers shut down more than 800,000 barrels per day of oil production at times in the past few months to avoid selling at low prices, thus freeing up space on export pipelines.

In May, Enbridge Inc. reported that its Mainline oil export pipeline system, which is typically oversubscribed by shippers, transported 400,000 fewer barrels of oil per day in April than its average of 2.84 million bpd in the first quarter.

This report by The Canadian Press was first published June 19, 2020.

Companies in this story: (TSX:ENB)

The Canadian Press

crude-by-rail

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

School curriculum to focus on basics, says LaGrange

Minister Adriana LaGrange, MLA for Red Deer South, said it will ‘unleash student potential’

1 in 7 Albertans have been tested for COVID-19

56 additional cases Thursday, 1,107 active cases remain in the province

Sylvan Lake man’s documentary getting limited run in Alberta theatres

Scott McDermott’s documentary will be in 14 theatres, including Sylvan Lake and Wetaskiwin

Masks now mandatory in schools for Grades 4-12, staff

Students, teachers and staff will be provided with two reusable masks to be worn in schools

94 new cases of COVID-19 in Alberta on Wednesday, two more deaths

1,146 active cases with 9,891 recovered cases

Protestors for Indigenous Lives Matter gather in Wetaskiwin

Protestors gathered along 56 St Wetaskiwin, Alta. August 4, 2020 for Indigenous Lives Matter.

Answers to 5 common questions facing families for the COVID-19 school year

COVID-19 protocols are likely to vary even more at the school board level, and even and school-to-school.

Other communities can learn from Sexsmith: AUMA president

Alberta Urban Municipalities Association is an advocacy group for urban municipalities

Proposed oil and gas assessment changes could have big impact on municipal revenues

Croup representing urban municipalities is concerned about the outcome

‘Do our lives count for less?’: COVID-19 exposes cracks in disability aid

In July, Parliament approved a $600 payment for people with disabilities facing additional expenses during COVID-19

Two females arrested for carjacking in Leduc; sword and bear spray used as weapon

Wetaskiwin and Maskwacis female arrested for carjacking.

Alberta man’s body recovered from Okanagan Lake after five-day search

‘The depth of the water, as well as the topography of the lake, made the recovery of the deceased very challenging’ - RCMP

Feds look to finalize deal with airlines amid contact tracing concerns

Feds look to finalize deal with airlines amid contact tracing concerns

Dwindling B.C. bamboo supply leaves Calgary Zoo biologists worried about pandas

Zoo has been trying to send pandas back to China since May

Most Read