Environment & Energy Report

Oil-Sands Crude Could Get Heavier Amid Pipeline Shortage

Dec. 2, 2019, 7:48 PM

Canada’s struggling oil-sands industry has a plan to cut costs while exporting more of their crude: Make it even heavier.

Companies including Cenovus Energy Inc., Gibson Energy Inc., Imperial Oil Ltd. and MEG Energy Corp. are looking to remove condensate and other light oils from the oil-sands bitumen they produce, so they can get more of it onto rail cars.

Doing so would dramatically reduce the cost of shipping crude by rail to the U.S. Gulf Coast, which otherwise can cost twice as much as shipping by pipeline. Removing the light oils, called diluent, would make rail shipments...

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