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Alberta is in talks to buy rail cars to transport 120,000 barrels per day of crude oil and expects a deal to conclude within weeks, Premier Rachel Notley said on Wednesday, as the energy-rich province takes actions to move oil stuck in the region because of a lack of pipeline capacity. Notley, who says the cars are needed to help deal with stranded oil that has slashed the price of Alberta oil, told a business audience she was disappointed that the federal government was not helping fund the purchase. Reuters revealed last week that Alberta had proposed a joint purchase of two unit trains and estimated the one-time capital cost at about C$350 million. Federal officials are cool to the idea, saying by the time the cars come on line late next year the supply problems will have eased. The 120,000 bpd of rail capacity is nearly equal to the current amount of stranded supply. “Alberta will buy the rail cars ourselves to move this oil … we have already engaged a third-party to negotiate and work is well underway. We anticipate conclusion of the deal within weeks,” Notley said in the prepared text of her speech. Notley said […]
