The Globe and Mail reports in its Friday, Nov. 8, edition that Canadian Natural Resources is non-committal about signing onto the crude-by-rail contracts that the Alberta government is trying to offload to the private sector.
The Globe's Emma Graney writes that CNRL president Tim McKay said Thursday that only the first part of shipping oil by rail is covered in the contracts. Missing is the crucial final step of where the crude will go.
Mr. McKay said, "You can get it onto the rail but there's no destination, so you have to figure out where you'd take it in the Gulf Coast, what that cost would be to unload it, and who you're going to sell it to."
CNRL was pegged by TD Securities as one of the front-runners in the rail-contract negotiations. Mr. McKay does not see CNRL forgoing its employment and production footprint in Alberta to up and move east, but said provincially mandated production limits have impacted his company's conventional business.
CNRL's swath of production facilities in Alberta and Saskatchewan means it has been able to manage curtailment and remain relatively unscathed, announcing on Thursday third uarter net earnings of more than $1-billion and adjusted net earnings of about $1.2-billion.
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