3.7B$ to lease 4400 oil cars for how long? AND... How is this not an export subsidy?

[poorboy]

US is down to 320K bbl day imports from 14 million/day back in the "peak oil" scare-mongering.

This is the real problem for Alberta oil. The biggest customer in the world does not need any oil (and our customer). More pipelines or rail cars to the west coast is not going to help. There is no market. Everyone who used to supply the US market is already looking to supply others in the world market.

However, the Eastern Canadian market is one that should be supplied by Western Canadian oil. Filling the Eastern Canadian market will remove the excess oil inventory and support prices.

Eastern pipeline is what should be done in the national best interest. Perhaps the rail cars are an attempt to supply this market.

On the rail car issue, if the Alberta government can just lease oil cars from the railways, doesn't that mean that the cars were already in service and waiting for oil guys to hire them to haul oil already? What difference did it really make to have the Alberta Govt involved, or is it just political grandstanding?

[burnt]

This is the real problem for Alberta oil. The biggest customer in the world does not need any oil (and our customer). More pipelines or rail cars to the west coast is not going to help. There is no market. Everyone who used to supply the US market is already looking to supply others in the world market.

However, the Eastern Canadian market is one that should be supplied by Western Canadian oil. Filling the Eastern Canadian market will remove the excess oil inventory and support prices.

Eastern pipeline is what should be done in the national best interest. Perhaps the rail cars are an attempt to supply this market.

On the rail car issue, if the Alberta government can just lease oil cars from the railways, doesn't that mean that the cars were already in service and waiting for oil guys to hire them to haul oil already? What difference did it really make to have the Alberta Govt involved, or is it just political grandstanding?

Unless I'm not understanding your question, did AF5 not answer it above?

[jazz]

Not true AF, the US still wants heavy crudes and with Venezuela fialing it is the perfect time to supplant them for good. Too bad our govt is too stupid to recognize that opportunity. Also china and india want lower quality crudes as well. There is a market there. I am not saying the sands should go to 10mm bbls a day or something, that market is not there, but for a few mm bbls a day it is.

But the players need to know they should be chasing lighter sweeter opportunities in shale and the bakken. US tech has lowered drilling and fracking immensely and if we apply that here we can still have an industry.

[jimmy]

These rail cars that are being bought or leased who is supplying them Warren Buffet? If he is this all makes sense.

[AlbertaFarmer5]

Not true AF, the US still wants heavy crudes and with Venezuela fialing it is the perfect time to supplant them for good. Too bad our govt is too stupid to recognize that opportunity. Also china and india want lower quality crudes as well. There is a market there. I am not saying the sands should go to 10mm bbls a day or something, that market is not there, but for a few mm bbls a day it is.

But the players need to know they should be chasing lighter sweeter opportunities in shale and the bakken. US tech has lowered drilling and fracking immensely and if we apply that here we can still have an industry.

Not sure what you are disagreeing about, if it is about the demand side, I addressed that in another thread, it is still very much in demand, and in fact a vital feedstock for many refineries, which need it to blend with the light sweet that is now prevalent. Much cheaper to do that than retrofit existing refineries set up for heavy and or sour.

[Saskpraireboy]

Tank cars are considered a 50 year asset. If the long term market for moving more crude by rail was there , the cars would already be in place by the large private car owners. One of which I work for.
They will not chase short term markets by building more tank cars . Short term demands are only filled by existing cars in the fleet.
Don’t get me wrong, obviously crude is moving by rail now but like I said, more demand is considered short term, so like 5 years or less.

[recapped]

Would it be possible to load tanker ships at Thunder Bay? Maybe it is already being done.

[bucket]

Would it be possible to load tanker ships at Thunder Bay? Maybe it is already being done.

Important question here....

Does Paul Martin's CSL own tankers for the Great Lakes to transfer it?????