Editor’s Note Vol. 26 No. 1 EDITORIAL EDITOR
Darrell Stonehouse | dstonehouse@junewarren-nickles.com CONTRIBUTING WRITERS
Carter Haydu, Richard Macedo, Pat Roche, Elsie Ross, Paul Wells
A golden age for railways
EDITORIAL ASSISTANCE MANAGER
Tracey Comeau | tcomeau@junewarren-nickles.com EDITORIAL ASSISTANCE
Kate Austin, Shawna Blumenschein, Sarah Eisner, Katy Jones, Sarah Maludzinski CREATIVE PRINT, PREPRESS & PRODUCTION MANAGER
Michael Gaffney | mgaffney@junewarren-nickles.com
Railways are an 18th-century technology that’s
1.69 billion pounds in 2007 to 5.84 billion pounds
CREATIVE SERVICES MANAGER
making a major comeback in the 21st century.
in 2012 and is expected to soar to 12.45 billion
Driving that comeback is the Canadian oil and
pounds in 2017.
Tamara Polloway-Webb | tpwebb@junewarren-nickles.com CREATIVE LEAD
Cathlene Ozubko GRAPHIC DESIGNER
Peter Markiw
gas industry. Difficulty in building new export pipelines
Railways are responding to this demand by shipping unit trains of frac sand across the
means increasing volumes of oil are going
continent. In early June, Source Energy Services
to be transported by rail, according to the
and Canadian National Railway Company (CN)
SALES
Canadian Association of Petroleum Producers’
announced a 100-car unit train of frac sand
SALES MANAGER—ADVERTISING
(CAPP’s) 2014 Crude Oil Forecast, Markets &
arrived in Grande Prairie, Alta., from Wisconsin.
SENIOR ACCOUNT EXECUTIVES
Transportation.
This equals around 10,000 tons of sand.
CREATIVE SERVICES
Ginny Tran Mulligan production@junewarren-nickles.com
Monte Sumner | msumner@junewarren-nickles.com Nick Drinkwater, Tony Poblete, Diana Signorile SALES
CAPP forecasts that crude moving by rail
CN thinks this is just the beginning as
Rhonda Helmeczi, Sammy Isawode, Mike Ivanik,
will more than triple —to about 700,000 barrels
operators begin ramping up for liquefied natural
Nicole Kiefuik, Gerry Meyer, James Pearce
per day in 2016 from 200,000 barrels per day in
gas exports out of British Columbia, said Jean-
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2013. Current rail-loading capacity originating
Jacques Ruest, the railway company’s executive
in western Canada has increased to 300,000
vice-president and chief marketing officer, at the
barrels per day from about 180,000 barrels at
company’s fi rst-quarter release.
AD TRAFFIC COORDINATOR—MAGAZINES
Lorraine Ostapovich | atc@junewarren-nickles.com DIRECTORS CEO
Bill Whitelaw | bwhitelaw@junewarren-nickles.com PRESIDENT
Rob Pentney | rpentney@junewarren-nickles.com DIRECTOR OF SALES & MARKETING
Maurya Sokolon | msokolon@junewarren-nickles.com
the beginning of 2013. In January 2014, there
“They drill, they frac and cap,” he said.
were more than 17,000 Canadian rail-tank-car
“They’re already moving pipe and frac sand to
loadings of crude oil and petroleum products.
northern B.C. to build up a base of readily avail-
Several large unit train–loading facilities
able gas.”
have been announced for western Canada, and
Even once a project gets the green light, it
Ian MacGillivray | imacgillivray@junewarren-nickles.com
these could be in operation by the end of 2015,
takes years to build, he said. “Then there will
DIRECTOR OF THE DAILY OIL BULLETIN
increasing western Canadian rail uploading
be a huge amount of drilling, a huge amount
capacity for crude oil to more than one million
of frac sand—and by huge, we mean unit
Gord Lindenberg | glindenberg@junewarren-nickles.com
barrels per day. Add in proposed facilities, and
train quantity.
DIRECTOR OF CONTENT
that number could climb to 1.4 million barrels
DIRECTOR OF EVENTS & CONFERENCES
Stephen Marsters | smarsters@junewarren-nickles.com DIRECTOR OF DIGITAL STRATEGIES
Chaz Osburn | cosburn@junewarren-nickles.com DIRECTOR OF PRODUCTION
Audrey Sprinkle | asprinkle@junewarren-nickles.com DIRECTOR OF FINANCE
per day. The unconventional oil and gas boom is
“That’s where the market is heading in western Canada, as it is in Texas. People want to ship 50-railcar blocks of frac sand, and
Ken Zacharias, CMA | kzacharias@junewarren-nickles.com
also increasingly depending on rail to deliver
eventually leading to 200-car blocks, with
OFFICES Calgary
materials across the continent. According to
high-efficiency, high-scale operations. All of
the Freedonia Group, Inc., the quantity of sand
this means a lot of good things for railroads
used in North America increased to 53.6 billion
and...for CN, whether it’s manufacturing or the
pounds in 2012 from 12.3 billion pounds in
resource itself.”
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1997. The forecast is for consumption to grow to
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growth rate will be in Canada, at 16.3 per cent
In Canada, 1 year $4 plus GST, 2 years $6 plus GST Outside Canada, 1 year $
93.9 billion pounds by 2017. The highest annual per year. In Canada, proppant demand grew from
Darrell Stonehouse Editor dstonehouse@junewarren-nickles.com
Subscription Inquiries Telephone: 1.866.543.888 Email: circulation@junewarren-nickles.com Online: junewarren-nickles.com GST Registration Number 826256554RT. Printed in Canada by PrintWest. ISSN 1204-441 | © 2014 JuneWarren-Nickle's Energy Group. All rights reserved. Reproduction in whole or in part is strictly prohibited. Publications Mail Agreement Number 4006240. Postage paid in Edmonton, Alberta, Canada. If undeliverable, return to: Circulation Department, 2nd Flr-816 55 Avenue N.E., Calgary, Alberta T2E 6Y4. Made in Canada The opinions expressed by contributors to Oil & Gas Inquirer may not represent the official views of the magazine. While every effort is made to ensure accuracy, the publisher does not assume any responsibility or liability for errors or omissions.
N EXT I S S U E August 2014 Charting midstream expansions in Alberta, plus LNG pre-drilling in northeastern B.C.
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