Canadian National Railway (CNR-T) rail-car loadings of heavy Canadian crude hit a record 356,000 barrels a day in the week ended Jan. 11, up from a daily average of 296,000 barrels in December.
The surge comes even as heavy Western Canadian Select's discount to the United States benchmark reaches a level that makes rail transport inefficient. The National Energy Board said Thursday crude-by-rail exports from Canada grew at a slower pace in November, but still reached a new record high.
Canada exported more than 330,000 barrels per day of oil, up about one per cent from October's total of 327,000 bpd, and more than double the 148,000 bpd moved in November, 2017. The slower November growth came after double-digit month-over-month growth in August, September and October.
Alberta's production cuts are not keeping oil from rolling down the tracks amid a pipeline bottleneck. Enbridge (ENB-T) said Monday it would ease pipeline rationing somewhat in February. Canadian Pacific Railway (CP-T) said Wednesday it may aim for 120,000 car annual load rate. Suncor Energy (SU-T) has warned that the tighter differentials have made crude-by-rail shipping "uneconomic." |
