Alberta weighing oil-by-rail options as energy minister reveals Chrétien's lobbying efforts

CALGARY — Alberta is actively looking at oil-by-rail options to increase crude exports to international markets while new pipeline projects continue to work their way through the approval process.Speaking at the Global Energy Show in Calgary on Wednesday, Energy Minister Brian Jean told the audience Alberta is looking at multiple ways to move more Alberta bitumen to both the East and West coasts of Canada.“I think oil by rail is a good opportunity,” Jean said, adding former Prime Minister Jean Chrétien has been regularly lobbying him on the idea of shipping Alberta bitumen by rail to Eastern Canada.“He lobbies me just about every day,” Jean said.“We're working on that as much as some people might not believe it's a possibility.”While Alberta is continuing to pursue additional pipeline capacity as its long-term solution — in particular the proposed one million barrel per day (bpd) crude pipeline to BC’s coast — the minister said rail could play an important role in the short and medium term as global demand for Alberta oil continues to grow.“We’re looking at all opportunities to move bitumen by rail or by pipeline,” he said..Alberta, Saskatchewan energy ministers rip Canada's rail and port infrastructure.Jean also confirmed Alberta is open to proposals that would see bitumen shipped by rail to the Northwest Coast, including Prince Rupert, where it could be loaded onto tankers for export to Asia.He also discussed the oil-by-rail scenario with Alberta and BC’s First Nations partners, saying one group had already approached the government to discuss the option of moving bitumen by rail “up the Northwest Coast to Prince Rupert.”“We talked about different pipeline opportunities and what direction they're going to be going,” Jean said.“We’re open to any of those solutions.”However, he emphasized that pipelines remain the most efficient and cost-effective method of transporting large volumes of oil.“Obviously pipelines are the best solution. They’re the most cost-effective,” Jean stated.“The truth is that if we have to have a million barrels a day, we need to build it as cost-effective as possible, or else the tolling will be too much and we're not gonna make any money. So we have First Nations partners in that discussion. We have a very coordinated team focusing on cost controls and long-term benefits to communities and all the shareholders.”

Alberta weighing oil-by-rail options as energy minister reveals Chrétien's lobbying efforts

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