Category Archives: Alberta Canada

Canadian province of Alberta leases 4,400 rail cars – enters crude by rail business

Repost from Reuters

UPDATE 2-Canadian province of Alberta leases 4,400 rail cars to clear oil glut

By Rod Nickel, February 19, 2019 / 12:06 PM

WINNIPEG, Manitoba, Feb 19 (Reuters) – Canada’s oil-producing province of Alberta has leased 4,400 rail cars in a multibillion-dollar move to clear a glut of crude that depressed prices, Premier Rachel Notley said on Tuesday.

Notley said Alberta would start putting cars into service in July so it can buy and sell oil itself. Canadian National Railway Co and Canadian Pacific Railway Ltd will haul a combined initial volume of 20,000 barrels per day that will reach 120,000 bpd by mid-2020.

Alberta’s rail investment is part of a rescue package for an oil industry struggling with high costs and the exit of some foreign majors. Pipelines have become congested because of environmental opposition that has stymied expansion.

The provincial government took the rare step in January of ordering oil production cuts.

“Rather than produce less, we have to find ways to move more,” Notley said in Edmonton.

The three-year plan will cost Alberta C$3.7 billion ($2.80 billion), consisting of buying oil, leasing cars and purchasing rail and loading services. Alberta expects to earn gross revenues of C$5.9 billion ($4.5 billion) from reselling oil and higher royalties to produce net revenues of C$2.2 billion.

Shares of CN and CP gained nearly 1 percent in Toronto. CN expects to handle 60 percent of Alberta’s barrels, Chief Executive J.J. Ruest said in a statement.

The Alberta government said in November, when Canadian oil fetched near record-large discounts to U.S. oil, that it was seeking train capacity. It has also provided incentives for petrochemical and partial-upgrading plants.

Canadian crude-by-rail volumes hit record highs last year, but declined in 2019 after production cuts made rail shipments less economic. Imperial Oil said it was forced to cut its own rail shipments to “near zero,” illustrating the potential for unintended consequences when governments intervene.

Economic conditions were already improving for rail shipments, Notley said.

Rail shipments are seen as a relief valve for oil when pipelines are full, but they are generally more expensive and less safe. A CN oil train derailed on Saturday in Manitoba.

Notley’s New Democratic Party government faces a stiff spring election challenge from the United Conservative Party (UCP). UCP energy critic Prasad Panda said the party was reviewing the rail plan.

Three-quarters of the cars will be the DOT-117J model, featuring thicker steel than some types. The rest will be DOT-117R cars retrofitted to meet some DOT-117J standards, but a type that BNSF Railway Co is phasing out after a derailment in Iowa last year. ($1 = 1.3205 Canadian dollars)

(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by Chizu Nomiyama and Peter Cooney)
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    Sturgeon County Canada: neighborhoods evacuated after train carrying crude oil derails

    Repost from CBC News

    Sturgeon County neighbourhoods evacuated after train carrying crude oil derails

    12 cars overturned on the railway in Sturgeon County northwest of Edmonton
    CBC News, Oct 22, 2017 9:32 PM MT
    RCMP asked residents in River’s Edge and Noroncal to evacuate their homes as a precaution after a train derailed Sunday afternoon.
    RCMP asked residents in River’s Edge and Noroncal to evacuate their homes as a precaution after a train derailed Sunday afternoon. (Teri Gosselin)

    Residents of two neighbourhoods in Sturgeon County, Alta., were allowed to return home Sunday evening after their homes were evacuated in the aftermath of a train derailment Sunday afternoon, county officials say.

    At about 1:45 p.m., 12 cars overturned on the railway northwest of Edmonton.

    The rail cars were carrying crude oil and two of them leaked, releasing about 30 to 50 litres, said Sheila Moore, communications officer for Sturgeon County.

    Those leaks have been stopped, CN spokesperson Patrick Waldron said in a statement Sunday evening.

    ‘Pretty unsettling’

    A resident of River’s Edge Place, Teri Gosselin, heard the clatter Sunday she described as the “craziest noise” she’d ever heard.

    “Just the loudest kind of metal-on-metal noise you could ever imagine,” she told CBC News.

    “Pretty unsettling.”

    Gosselin ​and one of her roommates went to check out what happened, when a CN crew member told them to step back because there was hazardous material on the ground.

    “You couldn’t quite smell the oil but you could see the sheen of oil or some sort of fuel on the cars,” she said. “Train parts everywhere.”

    No danger detected

    Residents were given the green light to return home after CN personnel assessed the area and determined there was no apparent danger, Moore said.

    RCMP had asked residents in the River’s Edge and Noroncal neighbourhoods to evacuate as a precaution, although police didn’t believe there was a danger to the public, Const. Kathleen Sossen told CBC News.

    The evacuation affected approximately 46 homes in the Sturgeon Valley area.

    Sturgeon County officials say it will take a couple of days to clean up after a CN train derailed Sunday afternoon. (Teri Gosselin)

    The county had set up a reception centre at Namao Hall on Hwy 37 for evacuees.

    No injuries or property damage have been reported, Moore said.

    Waldron said the company has activated its emergency response plan and environmental teams are on scene to start cleaning up.

    “We continue to work alongside local emergency responders,” Waldron said. The cause of the incident is under investigation, he said.

    Moore said the county expected clean up efforts to continue over the next couple of days.

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      CBC NEWS: Fort McMurray fire spreads north and east, destroys some oilsands facilities

      Repost from CBC News, Edmonton
      [Editor: For latest updates, see The Fort McMurray fire: What’s happening now, and what you’ve missed, the Globe and Mail.  – RS]

      Fort McMurray fire grows to 423,000 hectares, continues to threaten oilsands sites

      Wildfire stalls near Saskatchewan border but continues spread north to oilsands facilities
      May 18, 2016 9:08 AM MT Last Updated: May 18, 2016 1:20 PM MT
      An aerial view of the flames roaring north of Fort McMurray on Tuesday afternoon.
      An aerial view of the flames roaring north of Fort McMurray on Tuesday afternoon. (Phoenix Heli-Flight)

      The Fort McMurray wildfire in northern Alberta is carving a new path of destruction, destroying an oilsands camp while racing eastward toward more industry sites.

      The fire, which has become known as “the beast,” has grown by a staggering 57,000 hectares [220 square miles] in the last 24 hours, consuming 423,000 [1633 square miles] hectares of boreal forest as of Wednesday morning.

      Wildfire information officer Travis Fairweather attributes the “pretty significant” growth to “extreme fire conditions.”

      “It’s really being burning intensely and the winds have been carrying it,” he said Wednesday.

      The fire forced 8,000 non-essential workers to flee the area Monday night, and a mandatory evacuation order remains in place for all work camps north of the city.

      The majority were sent by ground to work camps near Fort MacKay, about 53 kilometres [33 miles] to the north. But some were also bused, or later flown, south to Edmonton and Calgary.

      By Tuesday morning, the flames had made their way to the Blacksand Executive Lodge, which provides accommodations to hundreds of workers in the area.

      The building’s sprinkler system was no match for the raging inferno, and all 665 units of the building were consumed by the fire.

       Noralta Buffalo Lodge
      Workers evacuate the Noralta Buffalo Lodge, 26 kilometres northwest of Fort McMurray, late Monday afternoon. (Justin Bourke)

      Within hours, the flames had spread east, threatening the Noralta Lodge Fort McMurray Village, a facility that can house more than 3,000 people, and Horizon North’s Birch Mountain, a 540-unit facility.

      Noralta officials took to social media Tuesday night to say the fire had been held back, but the site was still at risk and crews would be working through the night to protect the facility.

      Six kilometres [3.7 miles] away from the Blacksand Lodge, the Birch Mountain Lodge, also owned by Horizon North, remains in the path of the fire.

      “We’ve got eight camps in a perimeter around Fort McMurray, out of seven which have been evacuated,” Rod Graham, president and CEO of Horizon North, told CBC News on Wednesday.

      “We have not sent any of our people into harm’s way, but from unconfirmed reports we’ve had, our Birch property is still standing.”

      The wind was also expected to push the fire towards the Suncor and Syncrude oilsands facilities, but the province said both are highly resilient to fire.

      Each site is surrounded by wide barriers of cleared firebreak and gravel and are guarded by their own firefighting crews. However, only essential personnel remain at both plants.

      Crews in the area continue to work around the clock to douse the flames and create firebreaks around critical infrastructure, but the fire has become increasingly volatile amid high winds and tinder-dry conditions.

      “Over the last 48 hours it has certainly grown significantly, particularly along the eastern edge, growing toward the Saskatchewan border, but also growing north toward the oilsands facilities,” said Bruce Macnab, with the Northern Forestry Centre in Edmonton.

      “In these kind of conditions, the fire crews will be doing their best to fight the sides of the fire when conditions allow, but that’s very much weather dependent.”

      By noon Wednesday, the eastern front of the fire appeared to be stalled about five kilometres [3 miles] from the Saskatchewan border. The government there has established a wildfire base camp in the small community of Buffalo Narrows to use air tankers and helicopters along the eastern edge of the massive fire.

      But Duane McKay, Saskatchewan’s commissioner of emergency and fire safety, said smoke is the biggest concern for residents of the nearest community, La Loche, which is about 20 kilometres [12.4 miles] from the border.

      The fire itself poses no current threat to the town or any other Saskatchewan communities, McKay said.

      He said the wind is expected to shift directions later today and could blow the fire back on itself.

      “We don’t anticipate it crossing the border in the near future,” he said. But he cautioned that the fire “obviously has a mind of its own in terms of where it wants to go.”

      fire map
      A map from Natural Resources Canada shows the extent of the Fort McMurray wildfire fire as of May 17. (Natural Resources Canada)
        • Get the latest breaking news on this story. Download the CBC News app for iOS and Android.
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        BLOOMBERG: Alberta Wildfire Risk Seen Biggest for Storage Tanks, Equipment (map)

        Repost from Bloomberg

        Alberta Wildfire Risk Seen Biggest for Storage Tanks, Equipment

        Alex Nussbaum, May 6, 2016 — 2:25 PM PDT
        • Blaze reaches gates of Cnooc’s Long Lake, official says
        • Oil sands unlikely to burn but equipment, chemicals at risk

        “It seals itself off,” he said in a telephone interview. “You can find records of natural wildfires in these deposits for centuries and none of them have produced a situation where you have an extended fire.”

        Royal Bank of Canada estimated that as much as 1 million barrels a day of production was shut because of the blaze, or about 40 percent of oil sands output, as companies including Suncor Energy Inc., Cnooc’s Nexen, Royal Dutch Shell Plc, and ConocoPhillips reduce production and open work camps to residents escaping blazes in Alberta’s biggest-ever evacuation. Inter Pipeline Ltd. shut part of its system in the province. The disruptions pushed up the price of oil sands crude.

        “Eighty percent of the oil sands are located deep underground and can only be extracted through an in-situ drilling process,” Chelsie Klassen, a spokeswoman for the Canadian Association of Petroleum Producers, said in an e-mail on Thursday. “The remaining 20 percent is mineable from the surface and predominantly located north of Fort McMurray. Hydrocarbons can burn under the right conditions, however oil sands would burn at a much slower pace considering its composition with sand.”

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