Canada's Crude-by-Rail Terminals Sit Idle as Oil Glut Grows
- Cenovus says it seeks locomotives as it cuts crude production
- Rail companies seek long-term commitments from oil shippers
Photographer: Brett Gundlock/Bloomberg
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Stranded Canadian crude is waiting for trains to take it to U.S. refineries.
A rail terminal near Edmonton that oil-sands producer Cenovus Energy Inc. bought for C$75 million ($58.2 million) sits underutilized just when it’s most needed. The Bruderheim crude-by-rail facility is operating below its potential because of a shortage of locomotives, the company said last week.