Rail is as popular as it’s ever been for transporting crude oil.
That’s according to the National Energy Board which released numbers from Statistics Canada showing the increased popularity for the transportation method.
Back in August, 229,544 barrels of oil were exported each day – the highest volume ever recorded in Canada.
This is nearly double the amount in August 2017 which saw just under 120,000 bbls/d.
Rail production has been steadily rising since early last year, picking up steam over the summer months.
From June to August, rail averaged over 200,000 bbls/d.
These numbers could see an even bigger spike as more projects get started. This includes the ‘Alberta to Alaska’ Railway project which expected to start construction next year.
The provincial government is also focusing on rail as a way to move product as the pipeline discussions continue.
“Increasing the efficiency and availability of rail capacity to move our products. Industry leaders and I agreed that options like this one may be pursued,” said Premier Rachel Notley.
Meanwhile, the increase in rail is leading Auspice Capital Advisors to believe we could see a spike in oil prices in 2019.