- Cenovus Energy (NYSE:CVE) looks prescient in its just-completed $75M acquisition of the Bruderheim Energy Terminal, as delivering crude oil by rail may be making a comeback after losing steam in H1.
- The latest data from Canadian Pacific Railway (NYSE:CP) shows weekly crude carloads exceeding 2,000 units in the last two weeks of August, the first time this year since January.
- Amid oil volatility, discounts for Western Canadian Select have widened to ~US$15.6/bbl over the past six weeks, allowing companies to jump back on to rail.
- Despite skepticism even within the industry about rail’s relevance if major pipelines get built, Cenovus Energy (CVE) says it has already fielded nearly a dozen calls from producers to discuss transporting oil through its newly-acquired terminal that gives it ready access to 70K bbl/day in rail capacity.