Increase in Canadian crude by rail
Latest NEB data shows increase in Canadian crude by rail
By Deborah Jaremko
May 30, 2017, 3 p.m.
The International Energy Agency (IEA) prediction earlier this year that more oil is going to find its way onto the rails appears to be coming true.
The latest data from the National Energy Board (NEB) shows Canada’s crude by rail export volumes increasing to 132,693 bbls/d in February 2017, the highest since October 2015, when Canadian producers shipped 166,807 bbls/d by rail.
Crude by rail shipments increased dramatically in the fourth quarter of 2016 compared to the first nine months of the year, NEB data shows, averaging 116,651 bbls/d as the year ended compared to 62,751 bbls/d in Q3, 74,294 bbls/d in Q2 and 97,864 bbls/d in Q1.
The trend is likely to continue as Canada is left without enough pipeline capacity for continued production growth until at least 2019, the IEA said.
By 2022 Canadian oil production is expected to grow by 820,000 bbls/d to 5.3 million bbls/d, the IEA said in its five-year oil market outlook.