Canada’s output higher than capacity

Canada’s output higher than capacity

A new National Energy Board report has found that Western Canada is producing more oil than its pipeline infrastructure has capacity for.

The report said that as of September 2018, Western Canada has produced 4.30 million barrels of crude per day, while capacity was only 3.95 million bpd.

Canada’s largest producers, including Alberta, are turning to the use of trains to offset the shortage in pipeline capacity, with oil-by-rail shipments already at a record high.

However, because of the cost of this mode of transport, Premier Rachel Notley has announced obligatory production cuts that will total 325,000 bpd until the excess storage is cleared.

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