EDMONTON —The Alberta government says it’s investing $3.7 billion to move the province’s land−locked oil to market by rail.
It says 4,400 leased railway cars will move up to 120,000 barrels of oil per day by 2020.
Shipments are expected to begin as early as July.
“Pipelines will always be the best, most efficient, most economical long−term solution,” Premier Rachel Notley told a news conference Tuesday.
“We must take action today to provide more relief to our energy workers and the families who rely on these good jobs across this province and this country.
She says her government has been studying the plan since November and is ready to move forward.
“Albertans don’t just stand by. We take action.”
The province estimates the plan will lead to a $5.9−billion increase in royalties, tax revenues and profits over three years, meaning a net gain of $2.2 billion.
It expects the discount for Western Canadian heavy oil versus U.S. light crude will shrink by US$4 a barrel.
The rail investment is meant to be a medium−term measure as new pipelines to coastal ports, such as the Trans Mountain expansion to the West Coast, remain in limbo.
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