Improved economics allows producer to resume moving volumes.
Even as oil and gas production increase out of the Rockies region, the industry faces a number of pressing issues that could significantly halt this growth.
The government said the increase in production limits comes as warmer weather reduces the amount of diluent needed to help oil sands bitumen flow through pipelines, increasing capacity.
Proper procedures allow efficient construction—and operations—of rail-to-truck propane terminals.
Volume will reach 120,000 bbl/d by mid-2020.
PHMSA’s regulations will take effect in August.
Takeaway capacity cannot keep up with rising production and rail loadings will likely diminish in the winter.
The deals come as the discount on Canadian heavy oil has spread to $42, its widest point on record, as rising production from Alberta's oil sands has run up against full pipelines, leading to swelling volumes in storage.
Bakken crude resumes its flow after three years.
Leveraging Pecos terminal to help alleviate Permian Basin crude takeaway constraints.