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New Alberta premier aims to cancel oil by rail lease

(Source: S&P Global Platts, April 17, 2019)

WASHINGTON, D.C. — The new government in the Canadian province of Alberta will likely take a more aggressive stance with the federal government in Ottawa on pipeline issues and may cancel a rail-car lease that would have moved an additional 120,000 b/d of oil by July after the opposition party won Tuesday's election. Jason Kenney has promised to cancel Rachel Notley's deal to lease 4,400 rail cars starting in July to move more Alberta oil to the US and West Coast for export. He said market forces would work to move the crude without the government's help. Some analysts do not expect him to follow through with the promise, given substantial penalties that would result from breaking the contracts with Canada's two top railways.

Full story: S&P Global Platts

Monday, April 22, 2019

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