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Keystone’s Death Means Record Oil Revival for Canadian Railways

  • Volume of crude shipped by rail may double by next year
  • Rail revival is boon for Cenovus, Imperial and USD Group
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Keystone was the great hope for opening U.S. markets further to Canadian crude. Now that it’s dead, the railways are going to make not just a comeback, but transport more oil than ever before.

The Keystone XL pipeline was set to carry heavy Canadian crude south from Hardisty, Alberta’s oil hub, before being blocked by President Barack Obama last November, largely on environmental grounds. In a sign of what’s coming, exports by train rose 23 percent in April, the biggest year-on-year jump since September 2014, according to Canada’s National Energy Board