GREY:STPJF - Post by User
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M1DASon Jan 30, 2013 6:41am
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OT - Globe says Nexen looks to rail to help it exp
OT - Globe says Nexen looks to rail to help it exp The Globe and Mail reports in its Wednesday, Jan. 30, edition that Nexen is working toward having trains carry crude to an export terminal on federal land at Prince Rupert, B.C. The Globe's Nathan VanderKlippe writes that Canadian heavy oil is backing up in Alberta, creating steep pricing discounts and billions in forfeited revenues that are driving an urgent bid for new export options. Rail has become an increasingly viable option for oil movement, with Bank of Nova Scotia on Tuesday estimating as much as 300,000 barrels per day of Canadian oil are now moving by train. Also on Tuesday, Canadian Pacific Railway pointed to a "significant increase in volume of long-haul crude oil traffic" as a key reason for rising revenues. "Rail is starting to play a bigger role, so it's one of the things we're looking at," says Nexen spokesman Pierre Alvarez. Nexen has pursued the rail-to-water concept with the encouragement of the Port of Prince Rupert, which in 2011 selected land that could be used for the export of oil. Prince Rupert's Ridley Island is already serviced by a Canadian National Railway track. Mr. VanderKlippe notes the port has plans for substantial rail infrastructure.