The deal should be done within weeks and Alberta expects the two new train sets will mean an extra 120,000 barrels of oil can be moved every day.
Premier Rachel Notley announcing Wednesday (Nov. 28) that Alberta has started negotiations for a crucial investment in new rail capacity to help reduce the historically high oil price gap.
The differential is robbing the national economy of more than $80 million a day, thanks to Canada’s decades-long failure to build new pipelines.
“We will not stand by while we’re forced to give our resources away for pennies on the dollar. This oil price differential is about real people with real bills to pay and real concerns about the future. There’s no excuse for Ottawa to not be at the table with us, but we cannot allow delays to continue. Alberta will buy rail cars ourselves in our fight to get top dollar for the resources that belong to every Alberta", says Notley.
Alberta’s goal is to create enough new rail capacity to move 120,000 barrels a day out of the province to markets where our oil can earn the best value possible for three years, starting late 2019. It would narrow the oil price gap by up to $4 per barrel, generate more than $1 million per day in new federal revenues and provide smaller producers with a more affordable option to move their oil to market.
This additional capacity and dedicated service would also ensure that agricultural products, including grain, would not be affected by having to compete for space on existing trains. - Alberta Government Release