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

Just Posted

County of Stettler is unsure of Buffalo Lake RV Resort developers’ intentions or ownership

Leaseholders allege Buffalo Lake RV Resort development has possibly gone into foreclosure

Stettler authors continue to break new creative ground

Donna Hoopfer’s latest title, illustrated by her sister Joanne Hoopfer, was released earlier this year

PHOTOS: Flooding hits town on the afternoon of July 7th

Severe afternoon rain sent some folks out to explore in ‘creative’ ways

Stettler Town & Country Museum almost back to full hours

Some buildings are closed due to ongoing hail damage repairs

QUIZ: A celebration of dogs

These are the dog days of summer. How much do you know about dogs?

Serbia bans mass gatherings after virus lockdown protests

Serbia bans mass gatherings after virus lockdown protests

Mississippi seeing big virus outbreak in state legislature

Mississippi seeing big virus outbreak in state legislature

CDC head sticking to school-opening guides Trump criticized

CDC head sticking to school-opening guides Trump criticized

Bolivian president has COVID-19 as virus hits region’s elite

Bolivian president has COVID-19 as virus hits region’s elite

Confusion, frustration abound as feds weigh options for $900M student program

Confusion, frustration abound as feds weigh options for $900M student program

Parents concerned about children’s social lives, survey says

Parents concerned about children’s social lives, survey says

WE details thousands in fees for Trudeaus as volunteers await revamped program

WE details thousands in fees for Trudeaus as volunteers await revamped program

Canada not ready for second wave of COVID-19, Senate committee says

Canada not ready for second wave of COVID-19, Senate committee says

Most Read