Goulet benefiting from Oil-by-Rail program Stacey Lee


Goulet Trucking of Dollard, Sask., is among those few frontrunners benefiting from the increased utilization of Canadian Pacific’s Oil-by-Rail program.


It isn’t uncommon to hear the head of a company say that the business's current success is directly related to having explored new options, and in the case of Torq Transloading (Goulet Trucking), helping producers access United States markets has begun to pay off.


Jarrod Zielinski, President and CEO of Torq Transloading, says research revealing an inevitable backlog in takeaway capacity due to increased demand for Canadian crude oil, spurred the company to diversify.


“We looked into the volumes of the pipelines, the current commitments on them, and then layered on top of that the production expectation and the new explorations/production expectations," said Zielinski. "We found a discrepancy between the actual volumes expected and the volumes that are able to be


taken away from several markets.”


Zielinski says that Goulet Trucking, a sister company to Torq Transloading and subsidiary of Torq Capital Partners, wanted to be among the first at the table to supply an effective alternative to pipelines which have limited capacity.


“We saw opportunity to not only perform a function, as somebody who hauls various oilfield fluids (water, produced water, emulsion, crude oil), but to provide an alternative which can yield a higher net return for the producer.”


The process is simple, said Zielinski. Goulet tank trailers transport crude oil products from locations/batteries to CP Rail transload sites, where it is transferred into specially designed rail cars capable of moving the product to multiple markets not currently serviced by pipelines.


“As an oilfield company, Goulet Trucking has a pipeline terminal that we have been hauling to for decades. That crude goes into a tank, and then passes through a meter into an underground


pipeline. This process is similar in that we bring crude to a rail site, but the meters are portable. The crude passes through a hose from the tank truck, through a meter, and into the tank car.”


Stepping into the market has proven lucrative for the company, which was already had a long history of hauling oilfield product but needed to branch out to ensure survival. However, producers are benefiting from CP’s expanding oil-by-rail program as well.


“Moving crude by rail is slightly more expensive than moving crude through a pipeline, but the multi-directional capabilities of rail allows producers or the market to yield a higher price for the product when it reaches alternate destinations,” said Zielinski.


Zielinski explains that a flood of crude oil at the Cushing facility (Oklahoma) in 2011 meant that supply was greater than demand, and in turn meant the WGI (World Gas Intelligence) benchmark fell and watered down prices. By delivering crude oil, by rail, to markets without access to the pipelines, producers can


Proudly serving the Shaunavon and surrounding area for over 50 years, Goulet provides 24-hour tank truck service, hauling clean crude oil, crude oil emulsion, fresh and produced water and blowback fl uid. Goulet owns the exclusive leased use of the Dollard Truck Terminal on the South Saskatchewan Pipeline and is an affi liate of Torq Transloading, which operates numerous crude-to-rail terminals throughout Saskatchewan and Alberta.


Services Available Specialize in Hauling: ✓ Clean Crude Oil ✓ Crude Oil Emulsion ✓ Produced/Salt Water ✓ Fresh Water ✓ Blowback Fluid


Service


✓ Impeccable safety record ✓ Enform COR certifi ed


Our Core Values Safety


Why Goulet Trucking ✓ In business for more than 50 years ✓ One of the largest private tank trucking companies in Western Canada


Commitment


Safety Goulet Trucking staff are committed to not only meeting but exceeding our safety policies. Drivers must possess all safety certifi cates.


Fleet: One of the largest private fl eets in Saskatchewan and consists of well-maintained and certifi ed equipment.


Box 1084, Shaunavon, SK S0N 2M0 Phone (306) 297-2861 6 THE WESTERN CANADIAN PIPELINE | APRIL 2012


41074612


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