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Varcoe: Notley says Alberta will continue to buy oil wagons

Bill Morneau will not receive a Rachel Notley oil supply plan to increase the unprocessed shipment from Alberta.

However, the Federal Minister of Finance did not make an idea on Tuesday as a short-term solution to reduce Canadian oil producers' price discounts.

There is a growing check in the province, waiting for an answer, and the prime minister said on Wednesday that her government was moving ahead of the plan to buy trucks to drive more oil from Alberta.

Albert's prime minister recently asked the Trudeau government to consider helping them purchase wagons and locomotives in an attempt to increase the amount of crude oil that is being driven out of the province as pipelines are overloaded.

Morneau seems to have rejected the idea last weekend, saying that such a plan will be completed for at least nine months.

Speaking at the Calgary Chamber of Commerce over lunch and over, Morneau was asked several times on Tuesday when the federal government pledged money to improve rail facilities.

Last week, for example, Prime Minister Justin Trudeau, on his visit to Calgary, the finance minister shied away from a direct response, revealing the wider point that Ottawa was looking to see the expansion of its Trans-mountains pipeline.

"We do not want to shift our resources to ideas that do not actually have a significant impact," Morneau once said.

Speaking with reporters later, the finance minister left the door to examine this concept, but only just now.

"I know the industry here and the provincial government is talking about other ideas that could have short and medium term benefits," he said.

"We will be team members, trying to make sure that we are considering all the options and what is the appropriate federal role."

Well, team member, it's time to grab a check if Otto really wants to tackle the price difference.


The provincial legislature, Alberta's energy minister Marg McCuaig-Boyd, criticized Morneau and his federal counterparts for not covering the idea.

Although provincial and federal governments are moving to Trans Mountain, oil price discounts are a crisis and "we need some solutions," she told the Postmedia Clan for Clan.

"He does not seem to receive it," said the energy minister.

"It's very unsatisfactory, and I think it's a very tone deaf. I do not know what it will do to push the question that there is serious Albert here and we need help.

"But at the end of the day, if the festivals forget about Albert, our government is not".

This means that the province will most likely need to spend millions of dollars and buy tractors and locomotives themselves to move the plan forward.

On November, in a not-for-good talk, Notlie again called on Ottawa to join Alberta by purchasing more wagons and locomotives, saying that investments would be neutral, and serve as a safeguard against the delays of future pipelines.

"Alberta will buy rail cars for themselves to move this oil and we are not wasting at any time," she said, according to her speech to the Canadian Ottawa Club.

"We have already engaged in third-party talks and work well. We expect the deal to be concluded within a few weeks."

The railroad has become a friction between federal and provincial governments, as both are moving towards a problem related to Canada's inability to trade oil resources.

The price difference between the Western Canadian selection and the US benchmark standard crude on Tuesday was $ 38.19 per barrel.

The Provincial Government estimates that the Canadian economy's rebate is up to US $ 80 million a day.

In the absence of new pipelines to be expected by the end of next year, and the future of the Trans Mountains expansion and the Keystone XL project at the airport, the railways are still one of the few available options to increase transport capacity if additional locomotives and cars can be found.

Exports of crude oil have already been shifted by train, reaching 270,000 barrels per day on average.

According to Ottawa's Preliminary Business Plan for a single government source, partners will spend $ 350 million on equity costs, and estimated operating costs are estimated at $ 2.6 billion over three years starting in July next year.

This implies that revenues from shippers will be about $ 2 billion, while Ottawa will increase federal revenues by $ 1 million per day compared to the improved price gap.

Two new unit trains that could move around 120,000 barrels a day from Alberta could help the situation, although it took time to order new locomotives.

Industrial groups, such as the Canadian Research and Producers Association (EPAC), return to the provincial proposal.

Ottawa says that buying new locomotives and rail cars is not a temporary fix for the oil crisis, as new trains are needed for at least a year.

Elaine Thompson / Canadian Press / AP

Although it will not be online for several months, in the medium term, it will continue to improve the opportunities for oil transportation outside the West Bank.

"This is a fantastic idea, and this is a serious solution that should be considered in the light of the political problems we have had with the pipeline," said EPAC President Tristan Goodman.

Producers who are not large enough to sign long-term shipping contracts will not deliver more cars or locomotives unless they have any kind of government support or assistance.

The issue of rail cars is getting weaker because Canada's oil rebate represents a source of government financial chaos and oil revenues.

The credit rating agency Moody's Investors Service said this week that it expects the historically wide price differential to lead Alberta to a larger than forecasted deficit this year.

"Without a successful government policy measure, it would be possible to postpone the timetable for a return to balance," said Moody's Assistant Vice President Adams Hardy.

The Notley government project this year will have a deficit of $ 7.8 billion, and insists it will return to a balanced budget by 2023-24.

Wait to hear more about rail alternatives when premier talk On Wednesday, the Canadian Ottawa Club and the next day's Toronto Regional Trade Council.

Provincial oil along the railway plan is still chugging together, albeit slowly, with Alberta hoping to get momentum on its proposal.

However, so far, Ottawa seems to be alarming for the passage of this slow-moving train to be right.

Chris Varcoe is a journalist at Calgary Herald.

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