Canadian Drillers To Boost Crude By Rail Shipments

Due to continued shortage of oil pipelines to take Canada’s oil to markets, Canadian producers plan to remove diluents from their oil sands production so they can load more of the heavy oil onto railcars than they would otherwise ship via pipelines. Loading undiluted bitumen on rail cars would cut costs for transporting the heavy oil to the U.S. Gulf Coast refineries, because the removal of the condensate and light oil used as diluent would make the bitumen shipments via rail more cost competitive and even as nearly cost-effective as transporting…