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Notley proposes Ottawa get into crude-by-rail business

Last Updated Oct 22, 2018 at 6:05 pm MDT

On Monday in Calgary, Rachel Notley proposed Ottawa get into the crude-by-rail business. (Tom Ross - 660 NEWS)

Alberta Premier Rachel Notley is proposing Ottawa get into the crude-by-rail business.

She says Alberta heavy oil producers have been dealing with a punishing price gap between their product and U.S. light oil.

She says that amounts to money being taken out of the Canadian economy and sucked into American bank accounts.

The differential is about US$40 a barrel and has been as high as $52 in recent weeks.

Notley says new coastal pipelines to get access to international markets are necessary in the long term to get Alberta producers a better price.

In the meantime, she says, Ottawa should look to invest in moving oil to market on rail cars.

“We are in the midst of putting together a specific business case that we’ll be taking to the federal government late this week, early next week, where we lay out the specific costs,” Notley said Monday after a meeting with oil and gas industry leaders.

She said more rail cars and locomotives are needed, but she didn’t have the potential number or cost at her fingertips.