Crude By Rail Transport Plummets
CBJ — The delivery of crude oil by freight train fell sharply in February compared with January’s volume according to the Canada Energy Regulator.
In fact, delivery was down more than 40% primarily due to lower oil production as well as higher prices across most of the country.
According to statistics released by the CER, just under 112,00 barrels were exported per day, down nearly 200,000 in the first month of 2021.
Transportation of crude by rail is already deemed more expensive than shipping via pipelines, which doesn’t help the cause. Further to that, rail often gets the pipeline over-capacity supply from companies when pipelines are running at full capacity. When pipeline volume is operating below full capacity, the rail transport most often decreases.
Oil exports from Canada in February were about 3.7 million barrels per day, down from almost 3.9 million in January. More than 4 million barrels were transported in February of 2020.
The CER is a federal government agency under the Natural Resources Canada umbrella. The CER licenses, regulates and enforces rules and regulations on domestic and international oil, gas and electric utilities.
In other oil news: internationally, Brent crude has been selling for about $66 per barrel with WTI at about $62 per barrel.