fairly demand a higher market price for their product, he said.
“Some of our producers have told us that the last thing they want to do is shut in their production (due to backlog). The oil is worth more out of the ground than it is in the ground, and it does cost money to shut in a well. It is a higher cost strategy, but again there is a higher net yield… because of additional market options/alternative destination markets.”
Zielinski admits, however, that the CP oil-by-rail program and Goulet Trucking’s role in the process is simply an efficient alternative/complementary service to pipelines and will in no way be able to replace them. It is a sentiment shared by CP spokesman Ed Greenberg.
“Energy is an important market for Canadian Pacific and it is a growing portfolio for our company. We’ve been moving energy products for years, and it is the fastest growing portfolio. As an alternative our vast network of lines provides shippers with an advantage.”
Greenberg says producers are able to keep pace with expanding oil
production and to adjust to consumer requirements, such as smaller quantities and destination. CP is the only North American railway system to serve the Bakken formation, located throughout Alberta and Saskatchewan, as well as North Dakota, the heartland, and the Marcellus Shale region of the United States.
“We are certainly an option for producers/shippers because we offer flexibility for transporting crude oil and other related products to and from key locations around North America. In the Bakken North Dakota side… in 2009 we were moving about 500 carloads (from the Estevan area) of crude. In 2011
we moved over 15,000 carloads. It is continuing to grow.”
CP is continually working to expand its oil-by-rail program. It currently owns 35 transload sites located in both Alberta and Saskatchewan, and services more than 100 other transload sites spotting all over North America.
Goulet trucking is serving Southern Saskatchewan from sites in Dollard, Lloydminster and Tilley. It is also eagerly anticipating three new facilities to come online by the end of April. The first site is located near Estevan, the second near Unity and the third site, in northwestern Alberta, has not yet been announced.
I NSURANCE OIL & GAS SPECIALISTS
• Consultants
• Contract Operators • Excavators
• Service Industry • Welders • Vehicles
Phone: 403-526-8800 Fax: 403-526-7001 414 6th Ave SE Medicine Hat, AB T1A 2S8
Neil Maser, CIP, CAIB
Direct: 403-502-8382 Email:
neil@reliance-insurance.ca Adam Andrews, CAIB
Direct: 403-502-8389 Email:
adam@reliance-insurance.ca Justin Cunningham, CAIB,
B.MGMT.
Direct: 403-502-8388 Email:
justin@reliance-insurance.ca • LICENSED IN SASKATCHEWAN
THE WESTERN CANADIAN PIPELINE | APRIL 2012 7
410704585
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