Crescent Point -- Joins The CBR Crowd in Canada -- Rail Beats Pipeline By $5/Bbl
The Calgary Herald is reporting:
Fast-growing intermediate oil producer Crescent
Point Energy Corp. is moving nearly a third of its crude oil production
by rail and plans to do more, it revealed Thursday.
On
a conference call to discuss its first-quarter results, president and
chief executive Scott Saxberg said the company moved an average of
31,500 barrels per day to market by rail in the first three months of
the year using two loading facilities in Saskatchewan and another in
Alberta.
Near mid-year, it plans to open its
own rail loading facility in Utah to initially move about 5,000 bpd of
oil from the Uinta Basin assets it bought late last year. It is
currently moving 1,000 of its 9,000 bpd output through a third-party
rail facility.
“On the rail front, we continue
to increase the amount of crude we ship through our facilities in
Saskatchewan and Alberta, which has given us access to new markets and
reduced our exposure to crude oil price differentials,” Saxberg said.
Trent
Stangl, vice-president of marketing, said the net benefit of moving
crude by rail varies widely but has been $5 to $6 per barrel better than
pipeline so far.
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