Birn, Calgary Herald: With pipelines running near capacity, the spill and subsequent unplanned outage of the existing Keystone export pipeline late in 2017 caused production to back up into inventories in Western Canada. As inventory levels rose, prices began to fall as producers sought out buyers for trapped production.
Railroads were called upon to help move crude oil to market, but it was reported the rail industry was constrained in its ability to respond rapidly due to prior and existing commitments, including a backlog of grain.
The result: Canadian heavy crude oil has become trapped in Western Canada and its value reduced by about $24 million per day, since December.
Railroads were called upon to help move crude oil to market, but it was reported the rail industry was constrained in its ability to respond rapidly due to prior and existing commitments, including a backlog of grain.
The result: Canadian heavy crude oil has become trapped in Western Canada and its value reduced by about $24 million per day, since December.
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