The Canadian government announced today that as of December 2019 the production limits on oil producers will be raised with the stipulation that all additional production must be shipped via rail rather than pipelines. This effort will only be temporary but both Canadian National and Canadian Pacific railroads have stated that they can handle the additional crude shipments.
Energy Minister, Sonya Savage, said “The special allowance program will protect the value of our oil by ensuring that operators are only producing what they are able to move to market. Pipeline delays ultimately have constrained market access and dampened investment in our oil sector.”
