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Canada unable to fill heavy crude gap left by sanctions on Venezuela
2/15/2019

A dearth of pipeline capacity and the high cost of crude-by-rail shipments are preventing Canadian producers from taking advantage of the heavy crude shortage facing American refiners in the wake of US sanctions on Venezuela. Tudor, Pickering, Holt & Co. estimates that the cost of moving a Canadian oil barrel to the Gulf Coast by rail is $20, compared with around $12.50 via pipeline, which makes crude-by-rail uneconomical with the current gap between US and Canadian crude prices pegged at $10.70 per barrel as of Wednesday.

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