Oil sands companies are running out of room to get their products onto pipelines, according to the Financial Post.
It says the Trans Mountain pipeline which runs to the west coast is already seeing demand 70 percent above its capacity.
Southbound lines aren’t any better, with increased U.S. production making it harder to get oil sands crude to the Gulf Coast.
As a result, Canadian oil is selling for prices about 15 percent lower than the U.S. benchmark.
Some companies are compensating by increasing their own refining output, but companies like CNRL can’t do that – they’re being hit the hardest.
CNRL stock is down 22% this year.
October 11, 2012
