Post Tagged with: "Congestion"

Source: Keystone-XL

Keystone XL Ruling Comes at Worst Time for Canadian Oil Industry

From Bloomberg Producers already grappling with shortage of pipeline space TransCanada line seen as key to relieving that congestion A Montana federal judge’s ruling that threatens to further delay TransCanada Corp.’s Keystone XL pipeline comes at one of the worst possible times for the Canadian oil industry. Energy producers in the northern nation already are struggling with a shortage of pipeline space that has hammered prices for their crude, sending its discount to U.S. benchmarks to the widest on record in recent weeks. The situation has Canadian drillers cutting production, shipping unprecedented amounts of oil via more-expensive rail and even turning to trucks to get their output to market as stopgap measures until new conduits come into service. Keystone XL was seen as a major step toward solving that problem. The pipeline would have added 830,000 barrels of daily shipping capacity — about 4.2 percent of U.S. oil demand — when it came into[Read More…]

November 9, 2018 - 11:50 am Canada, Closing Bell Story, Law