Pipeline progress means crude-by-rail slowdown could be much more long-term
CALGARY — Big moves by the Canadian and U.S. governments on oil pipelines in recent months are threatening the long-term future of the main alternative: crude shipped by rail.
First the federal government approved both Enbridge’s Line 3 replacement and Kinder Morgan’s Trans Mountain expansion last November, while just last week TransCanada reapplied to have its Keystone XL project approved after being invited to do so by U.S. President Donald Trump.
All of the projects still face significant environmental opposition, but if built, the combined extra capacity of nearly 1.8 million barrels a day would provide enough room for all of western Canadian production expected by 2030.
“Down the road, if all those pipelines get built, then crude by rail becomes probably a moot point,” said Dirk Lever, managing director at AltaCorp Capital.