Cenovus looks to rail for moving crude

By Tonya Zelinsky

 03 May 2012 22:59 GMT

Pipeline constraints in the US has Cenovus Energy looking to rail to move its crude from the oil sands of Northern Alberta, Canada, writes Tonya Zelinsky.

The Canadian company said it is considering converting a number of rail cars out of British Columbia.

A bottleneck at Cushing, Oklahoma has many Canadian oil producers seeking alternative ways to get crude across the border and to refineries along the US Gulf Coast.

“We are pursuing ­opportunities to move our crude on rail,” executive vice president of refining, marketing, transportation and ­development, Don ­Swystun, said. Currently, the company is moving about 2000 barrels per day, primarily from Saskatchewan’s Shaunavon and Bakken light oil plays, and is considering using more rail transport out…

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