logo |

News

    Home   >     Industry    >     Main body

    Alberta Eyes Oil Route After Trump OKs Alaska Rail Link

    Abstract:U.S. President Donald Trump‘s decision to approve a rail link between Canada and Alaska could open up an export route to Asia for Alberta’s struggling oil sands producers.

      U.S. President Donald Trump‘s decision to approve a rail link between Canada and Alaska could open up an export route to Asia for Alberta’s struggling oil sands producers.

      The presidential permit, announced in a tweet late on Friday, will push forward a $17 billion project to build a rail line between Fort McMurray, in the heart of Albertas oil sands, and Delta Junction in Alaska, according to Alaska – Alberta Railway Development Corp., or A2A, the company behind the project.

      Canadas oil industry has struggled for years with a lack of enough pipeline infrastructure to ship its crude, with projects like the Keystone XL stalled for more than a decade.

      “Rail has played an essential role for industry in reaching existing markets, particularly given the lack of adequate pipeline capacity,” Ben Brunnen, a vice president at the Canadian Association of Petroleum Producers, said in an email. “Greater market access shows investors that there is a path to growth.”

      The company said in December that it could begin presenting its proposed rail link to potential shippers by early 2021 to seek commitments. An email to A2A on Monday wasnt immediately returned.

      Alberta‘s government welcomes the U.S. presidential permit for the project, Sonya Savage, the province’s energy minister, said in a tweet. “We support the development of trade corridors that can unlock new markets.”

      The rail link could serve as an alternative way for oil sands producers to sell into the Asian market, allowing the industry to diversify its customer base away from the U.S., which currently buys nearly all of Canadas oil exports. A planned expansion of the Trans Mountain Pipeline to Vancouver is currently under construction, but the project has faced years of delays and fierce opposition from some residents of British Columbia, who see it as a threat to the environment.

      Although the collapse in oil demand because of the Covid 19 pandemic has reduced crude-by-rail shipments, Canadian oil producers have turned to rail in recent years due to a shortage of export pipelines and a series of setbacks and court delays in getting new ones built.

      Shipments of Canadian crude by rail to the West Coast of North America for export are rare. In 2018, a company called Canadian Advantage Petroleum shipped a cargo of heavy Western Canadian crude out of Oregon to China.

      (Updates with statement from CAPP in third paragraph)

    Latest News

    New Zealand Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    New Zealand Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.