Energy Transport Insider reported last week that a widening price spread between Canadian and U.S. crudes amid increased global demand has been upping the appetite for Canadian product. Because the going price for crude oil has been dramatically lower in Alberta, where most of Canada’s oil originates, many energy transport participants have been pulling tank cars out of the U.S. and sending them to Canada to pick up product.
Here’s how Canada’s Class I railroads - Canadian National Railway Company (CN) and Canadian Pacific Railway (CP) - told Energy Transport Insider that they are addressing the bump in demand.
First, let’s set the scene.
Declining Venezuelan and Russian c...