Calgary

Crude oil shipments by rail bounced back from summer lows, energy regulator says

Canadian exports of crude oil by rail are bouncing back after falling to an eight-year low in July.

Canada Energy Regulator says exports of crude oil by rail rebounded in September

Grain and oil rail cars pass by a grain elevator in Rosser, Man., in 2014. The Canada Energy Regulator says rail shipments of oil in September 2020 amounted to 94,440 barrels per day, after falling to an eight-year low of only 39,000 bpd d in July. (John Woods/Canadian Press)

Canadian exports of crude oil by rail are bouncing back after falling to an eight-year low in July.

The Canada Energy Regulator says rail shipments of oil in September amounted to 94,440 barrels per day, nearly double the 51,000 bpd shipped in August.

Only 39,000 bpd was shipped in July. That's less than a tenth of the record 412,000 bpd moved by rail in February.

Rail transportation of crude oil is considered to be more expensive than shipping by pipeline so shippers tend to use it only when pipelines are full or if the destination market offers much higher prices than can be achieved in Canada.

The CER says the lower use of rail compared with February results from lower crude oil production in Western Canada as global oil demand slumps due to the COVID-19 pandemic.

The reduced production levels have freed up more space on export pipelines.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Become a CBC Member

Join the conversationCreate account

Already have an account?

now