|  Christine Marie Nielsen

Research Firm Contends “Crude-by-Rail is Back”

Because Canada’s crude oil pipelines are full, shipping crude by rail “has become a necessity in order to deal with the production glut,” wrote analysts with Desjardins Energy Research in a research paper dated March 26.

Analysts from the firm say Western Canadian Sedimentary Basin (WCSB) crude oil production volume exceeds pipeline takeaway capacity, at both current and projected (over the next three years) levels.

“By our estimates, the shortfall in pipeline export capacity is 307 mbbl/d in 2018, 434 mbbl/d in 2019 and 308 mbbl/d in 2020. And because there is no quick fix, crude-by-rail (CBR) is the only near-term solution to clearing the surplus barrels,” the analysts wr...

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