Canadian crude-by-rail exports drop by half in April as fuel demand plunged

Canadian crude-by-rail exports drop by half in April as fuel demand plunged

Canadian exports of crude oil by rail dropped by more than half in April compared to March as North American fuel demand plunged due to measures taken to control the COVID-19 pandemic.

The Canada Energy Regulator says rail shipments of oil in April fell to 156,000 barrels per day, down from 351,000 bpd in March and 240,000 bpd in the same month of 2019.

Shipments reached a record high of 412,000 bpd in February.

Rail transportation of crude oil is considered to be more expensive than shipping by pipeline and 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.

Earlier this week, pipeline company Enbridge Inc. confirmed 800 employees have taken voluntary buyouts, allowing it to avoid layoffs as it cuts costs to counter impacts from COVID-19 and lower global oil prices.

It reported last month that its Mainline oil export pipeline system, which is typically oversubscribed by shippers, transported 400,000 fewer barrels of oil per day in April than its average of 2.84 million bpd in the first quarter.

This report by The Canadian Press was first published June 19, 2020.

Companies in this story: (TSX:ENB)

The Canadian Press

crude-by-rail

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Up to 60,000 Alberta beehives could perish

“A perfect storm” of obstacles is threatening thousands of Alberta beehives. “It’s… Continue reading

57 new COVID-19 cases confirmed in Alberta on Friday

Central zone remains at three active cases

Frontline rural police will benefit from new support positions say municipal representatives

Province says of 43 new RCMP officers on the job, 18 will provide support and specialized services

China finds energy expertise in central Alberta

Red Deer County companies Icon Energy Services and C-Sense Consulting find success in China

Man and woman accused of breaking into rural lease site arrested

Pair arrested after vehicle got stuck in field near Huxley

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

Saskatchewan to learn lesson after disposing expired N-95 masks: health minister

Saskatchewan to learn lesson after disposing expired N-95 masks: health minister

Premier promises to keep a close watch on people in vehicles with U.S. plates

Premier promises to keep a close watch on people in vehicles with U.S. plates

Tears, prayer and a white hat as Brazilian cowboy finishes Alaska-Calgary trek

Tears, prayer and a white hat as Brazilian cowboy finishes Alaska-Calgary trek

WE group to stop running federal volunteer program, return funds already paid

WE group to stop running federal volunteer program, return funds already paid

Ethics watchdog to examine Trudeau over WE Charity contract, since reversed

Ethics watchdog to examine Trudeau over WE Charity contract, since reversed

Canada’s long-term care system failed elders, before and during COVID-19: report

Canada’s long-term care system failed elders, before and during COVID-19: report

Maine, Vermont next in fight over aid to religious schools

Maine, Vermont next in fight over aid to religious schools

It’s play ball for Red Deer Legends and Twilight Baseball League

In a normal year, Blair Hanna and the Red Deer Legends would… Continue reading

Most Read