Wednesday , March 22 2023

Notley urges Ottawa to help add oil as the province eyes by buying the train cars to break the glut


The protesters outside the event Prime Minister Justin Trudeau attending at & # 39; Calgary, Alta., On Thursday, 22 & # 39; November, 2018.

Jeff McIntosh / The Canadian Press

The government & # 39; Alberta appealing for help & # 39; Ottawa to move more oil from abandoned rail province, but the Prime Minister does Justin Trudeau offered no immediate relief for the industry to ensure that a "crisis" as prices fell.

The Premier & # 39; Alberta Rachel Notley said that her government will manage & # 39; ahead and buy rail cars alone if necessary, and adds that there is a good case & # 39; business for strengthening transport oil train. Failure & # 39; area on pipes created backup & # 39; oil & # 39; Alberta that sent prices into sin.

"If Ottawa does not arrive at the table, then we will do ourselves," she said on Thursday morning.

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Ms Notley proposed plan & # 39; three years for Ottawa and Alberta to buy and operate rail cars to sell excess oil. The plan would cost about $ 3 billion and add rail oil capacity & # 39; up 120.000 140.000 barrels a day.

Mr. Trudeau said the embedded prices for many oil & # 39 Later, in a morning of Chamber of Commerce & # 39; Calgary,; Alberta are "unacceptable" and "the status quo can not continue." But when asked about the addition of & # 39; more rail oil, ideas & # 39; 11 industry leader at a meeting & # 39; afternoon, and described the market issues as "complex".

He received polite applause from the business crowd. Outside the downtown hotel where the luncheon was held, about 800 demonstrator for power closed city block while talking to 'pipelines now "and" fill the pipe. "

The visit of Mr. Trudeau was days after the fiscal update of the federal government brought corporate tax cuts but nothing specifically for the oil business. The price of & # 39; crude oil & # 39; Alberta fled due to factors including lack of & # 39; & # 39 capability; pipes and temporary closures at refineries. The price is expected to recover in the spring, but Ms. Notley and Mr. Trudeau said that the Canadian economy is losing $ 80 million a day. While the industry is damaging, is divided: some major oil producers want the Alberta government compels companies to reduce production, and others oppose the idea.

F & # 39; & # 39 statement, an association morning & # 39; Oil drillers in Calgary & # 39; s Petroleum Club, Ms Notley said Ottawa had to offer assistance to Alberta in its fiscal update.

"There are a lot of folks here who will be excused to say, & # 39; Geez, if there was such a & # 39; ongoing economic crisis in the manufacturing center f & # 39; Ontario, we are quite sure it will move & # 39; ahead in the first two paragraphs of & # 39; fiscal update, "she said.

Mr. Trudeau said the top priority & # 39; industry is a new pipeline. "I have read pipeline," he said about buying & # 39; Project Ottawa Trans Mountain in & # 39; May, adding that the government is working "to ensure that the pipe start building slowly with right. "

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The PM talked about the support of his government for Alberta: "This is a very crisis."

The production of Canadian oil rose 7.5 percent this year to 4.3 million barrels per day from four & # 39; million in 2017. Of & # 39; this increase, about half – some 160,000 barrels a day – is heavy oil, which is & # 39; inferior quality and always brings less than the Point & # 39; reference & # 39; North America & # 39; On But this fall, the price fell a record low. More oil moving by rail – the National Energy Board says that 270,000 barrels per day were transported by rail to the United States every day in & # 39; in September, twice a year ago.

The two major railways in Canada are moved more oil this year. But they are limited by the number of & # 39; crews and locomotives and rail space. Canadian National Railway Ltd. is recovering from network congestion earlier this year brought an increase in goods and not enough staff and machines.

"We look & # 39; forward to further discussions with stakeholders and all levels of government on how to train you & # 39; be part of the solution to citizens of Canada is marketed oil, "CN said in & # 39; email.

A spokesman for Canadian Pacific Railway Ltd., refused to comment.

The ability to plan & # 39; three years proposed by Ms side came to years from now. Ottawa appoġġatx with the idea, partly because some space & # 39; new pipeline is also expected at the same time, and other negative factors are also projected to be reduced.

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On Thursday afternoon, Mr. Trudeau met & # 39; to & # 39; a group that included key executives & # 39; SUNCOR Energy Inc. and Cenovus Energy Inc., two major brands with & # 39; opposing views on solutions. Cenovus CEO Alex Pourbaix the last week asked the government & # 39; Alberta to require a reduction in production. SUNCOR Energy, to benefit from lower prices of oil in its refineries, is contraindicated.

Ms Notley said that Azerbaijan seeks to come by & # 39; short-term solutions "very soon" but on Thursday spoke with & # 39; generally about "range & # 39; options".

Cenovus, which reduced the production of & # 39; oil sands, the province expects favors reduction.

"I think arriving to the conclusion that reducing x & # 39; is probably the only option," said Keith Chiasson, senior vice president & # 39; & # 39 of Cenovus; Downstream, whose job is to get the best price for oil company, said in & # 39; interview Thursday.

Mr. Chiasson criticized integrated producers, which both produce and refine oil, such SUNCOR, and Imperial Oil Ltd. The lowest price for crude allow these companies to make higher profits on products that do, such as petrol. He said that exploiting b & # 39; unfair way from low cost & # 39; oil & # 39; Alberta in their refineries.

"The market is divided," said Mr. Chiasson. "Those integrated producers are making windfall profits on the back & # 39; ALBERTANI, and Canadian taxpayers. The government wishes to protect the people of Canada."

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Jason Kenney, leader of the Conservative Party of the United Province, said Alberta should consider ordering a decrease in production. He also said that the Prime Minister on Thursday provided "sakkarine words and no action".

B & # 39; report by Eric Atkins and files from Reuters

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