In a move the province says should net Albertans a better price for energy resources found in Alberta, Premier Rachel Notley announced her government has made a deal with Canadian National (CN) and Canadian Pacific (CP) railways. The lease agreement of roughly 4,400 rail cars will move up to 120,000 barrels per day by 2020.
Just last year Notley outlined short, medium and long-term plans to make sure Alberta was getting top dollar for its energy resources by creating the Crude-by-Rail strategy. The investment in increased rail capacity totals about $3.7 billion.
According to a news release, the move will help the industry, including small producers who may not have the ability to take this action on their own.
This investment, and the development of the Crude-by-Rail strategy, Notley says the additional rail cars carrying oil will have no impact on the shipments of agricultural products.
“I want to stress to all of you, that we have been assured by both CP and CN that this increase in crude shipments will not disrupt the movement of agricultural products and other commodities that depend on rail transportation,” Notley said at a news conference.
The province anticipates commercial revenue and increased royalty and tax revenues will generate approximately $5.9 billion over the next three years. The first rail cars to transport Alberta oil could be as early as this summer.
“Each and every Albertan owns our energy resources and deserves to get top dollar for them. We are taking decisive actions to protect people and to protect our natural inheritance,” she adds. When challenges are placed in front of us, we overcome them. I’m going to keep working every day to fight for a better future for every person who calls Alberta home.”