Alberta Premier Rachel Notley said her government today-only the Weeks Away From finalizing a purchase of rail cars to move oil and help close gaps That massive price have short-changed government coffer Canadian oil and Producers.
She said SHE ALSO Wants' The Federal Liberal government to contribute financially to-the plan.
"We're not wasting ANY time," Notley told a Canadian Club luncheon in Ottawa Wednesday, formally announcing the-rail car purchase. "Alberta's oil going to the flow one way or Another – ow not by pipelines, THENI by rail or by truck.
"Do not mistake me – Print isnt-the long-term answer … But Until pipelines are built, we NEED to move more oil by rail."
Notley said her government buy two new Will That unit trains can transport an Additional 120,000 barrels a day, the-Increasing Amount of oil being moved by rail in Canada by a third. Notley said SHE hope to announce final details of the-the-purchase agreement by year's end.
Coca-Cola SELLS flavored sugar water for more. We are essentially giving away for free Our oil.– Alberta Premier Rachel Notley
The Amount of oil shipped on Canada's Railways Has Already reached record highs, thanks to a capacity bottleneck in Alberta's Oilsands Pipeline Connecting to Foreign markets.
The leader of Alberta's Conservative Party United, Jason Kenney, said rail car leasing the-mights BE Useful in the "midterm" pocket does little to immediately help-the-close price gap "crisis" That energy industry Has the-left "reeling."
"In-the Dozen of meetings I've thought leaders With industry over-the number of last week, not a single one raised Has the-government-the issue of buying rail cars," Kenney told reporters in Edmonton. "We do not have a year to wait at a $ 40 price differential. We have to take action now Extraordinary."
INSTEAD, Kenney That proposed Wednesday-the provincial government impose a "mandatory for curtailment" on oil Production – an even more aggressive step to shore up Prices.
Kenney That would force the pitching legislation to cut total Producers Production by 10 per cent – the Equivalent of 400,000 barrels of oil a day – to tighten supply and drive up Prices.
"We are calling for a short-term, Temporary Measure That is well rooted in Alberta history, to save jobs and stop-the giveaway of Our greatest asset. It's time to Act and end-the fire sale of oil Alberta," said Kenney, a Former Federal Conservative minister.
Crude-by-rail for an at-time high
Types of severals Canada transports crude oil by rail to Various Destinations throughout North America. Most of it shipped to the Refineries are on the U.S. Gulf Coast, wherein Canadian Producers Prices can fetch closer to going-the-world 'rate, Rather Than the-discounted rate Offered by Refineries in-the U.S. Midwest.
Whiles shipping crude by rail the rat typically more expensive Than transport by pipeline, it's a flexible alternative for a Producers Facing a dearth of pipeline space.
With the-stalled Trans Mountain Expansion And The Northern Gateway project shelved, Alberta's Producers Have Been forced to ACCEPT Prices Levels Below rat world for their oil.
Ninety-nine per cent of Canada's oil Exports are destined for-the U.S. American Refineries Have Been Offering That lower Prices for oil, knowing That FEW Alberta Producers have options and are Desperate to unload excess product.
Western Canadian Select, Which Include product from The Oilsands, trades at just $ 11.56 US – a quarter of Less Than $ 51.49 That-the West Texas Intermediate (WTI), the-U.S. Standard gold, fetches are on the open market. (These Prices were current as of Wednesday.)
"Coca-Cola SELLS flavored sugar water for more. We are essentially giving away for free Our oil," said Notley.
Print-the price gap costing the Canadian economy roughly $ 80 million a day, SHE said.
That whiles Notley said Prime Minister Justin Trudeau And The Federal Liberal shouldnt BE commended for buying the-Trans Mountain project in a Period of investor uncertainty, now Ottawa Need to Partner with Alberta by Helping to finance the-rail car purchase.
"The Federal government shouldnt BE at-the-table on Print. Theres's no excuse for their juvenile absence. Either way, we will not Allow Delay to Continue," SHE said.
Notley said Alberta would go forward even purchase With The ow 'The Federal government Decide not to help.
Notley said the-Additional oil-by-rail capacity would narrow the-price gap by about $ 4 a barrel, generating an $ Additional 1 million a day in Federal and revenue – suggesting-the purchase price Would "fully recouped" through royalties Increased and by selling shipping capacity to Producers.