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Enbridge’s Cheecham Terminal in the Athabasca oilsands region. Image: Joey Podlubny/JWN Enbridge Inc. is pushing back at criticism that its procedures for nominating barrels of oil shipped through the company’s pipeline system is partly to blame for depressed Canadian crude prices. The owner of Canada’s biggest crude export pipeline system is facing scrutiny after a surge of production sent crude prices in Western Canada to their lowest level in at least a decade, with heavy Western Canadian Select trading at a discount to West Texas Intermediate futures of $50/bbl last month. Steve Laut, vice-chairman of oilsands producer Canadian Natural Resources, said this week that the current system for nominating barrels on Enbridge’s Mainline is partly to blame for low prices and allows “a few players” to exploit others by nominating barrels of oil they don’t have or intend to ship, known as “air barrels.” Rachel Notley, Alberta’s premier, also expressed concern at a press conference on Monday, saying the issue will be discussed in consultation with industry. “The Enbridge Mainline system is essentially full,” Enbridge spokesman Jesse Semko said in an email. “There is no material capacity to be gained by changing the apportionment and supply verification procedures.” Current […]
