Oil companies say industry could take on Alberta crude-by-rail deals

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Executives at some of Canada's biggest oil producers say the private sector...

CALGARY, Alberta/ WINNIPEG, Manitoba - Executives at some of Canada’s biggest oil producers say the private sector could potentially step in to take over Alberta government crude-by-rail contracts that the province’s new premier has vowed to scrap.

The C$4-billion plan was formulated last year by Rachel Notley’s New Democratic Party government, which lost the April 16 provincial election and will make way for Jason Kenney’s United Conservative Party when he is sworn in as premier next week. The CEO of Cenovus Energy Alex Pourbaix, said on Wednesday that there were “lots of opportunities” to do something with rail to get it out of government hands, and Cenovus would be willing to participate in those discussions as a facilitator.

Prices surged last year from record lows after the Alberta government imposed production curtailments to ease a glut of crude in storage, resulting in a dive in rail shipments.

 

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Horrible idea. Pipeline is the safest way.

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