By Charles Lefebvre

Notley defends oil by rail contracts during campaign stop

Apr 1, 2019 | 1:28 PM

CALGARY, AB — NDP leader Rachel Notley reiterated her support for the Trans Mountain Pipeline expansion, and defended her plan to move oil by rail 16 days before Albertans head to the polls.

Speaking at a campaign stop in Calgary, Notley again confirmed her party’s plan, if elected, to move crude oil by rail starting this summer. Notley announced the $3.7 billion dollar plan in February, as a measure to help move oil to markets while the pipeline expansion remains in limbo.

“The economic consequence of restricted market access affect us all, particularly here in Calgary,” Notley said during the announcement. “Last fall, the lack of pipelines drove the price differential to record highs. That meant we were being forced to sell our oil for almost nothing, an intolerable situation.”

Approximately 4,400 rail cars would go online in July to help move oil and reduce the backlog of oil in Alberta. Notley estimates the rail cars will help move 120,000 barrels per day, and generate approximately $2.2 billion in revenue.

Notley also took aim at the United Conservative Party during her speech. Over the weekend, Jason Kenney and the party released its full platform, revealing that it would cancel the crude by rail contract signed earlier this year by the NDP government.

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“Not only does moving by rail car clear the backlog, reduce the differential, save jobs and make considerbale profit, it sends the right signal to international investors around the world,” she said. “It says that in Alberta, we will not strand our oil, we will not leave it in the ground, as Mr. Kenney is proposing. You can count on us to move it to market. This is critically important for economic confidence and stability.”

During the stop, Notley said she will continue fighting for the Trans Mountain pipeline expansion, saying “it will be built.”