Crude oil imports from Canada by rail now exceed rail movements from Bakken (12/6/2018)

Between 2010 and 2017, most of the crude oil moved by rail in the United States came from the Midwest (Petroleum Administration for Defense District, or PADD, 2), driven by production out of the Bakken region and the price differential between Brent and West Texas Intermediate (WTI) crude oils. Since 2017, however, crude oil imports by rail from Canada have increased and, in recent months, exceeded volumes originating from PADD 2. The recent increase in Canadian crude oil imports by rail is driven by growing Canadian production combined with pipeline constraints out of Canada. A steep price discount of Western Canadian Select (WCS) to WTI is associated with these developments. WCS crude oil is typically priced lower than other crude oils because of differences in crude oil quality, although increasing production of WCS and pipeline capacity constraints in Western Canada have resulted in even lower prices of WCS compared with Brent and WTI. ... More »