• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • Headlines
    • Latest Headlines
    • Columns
    • Discussions
  • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts
    • CAODC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
  • Industry Data
    • Canada Well Licences
    • USA Market Data
    • Data Subscription
  • Jobs

STEADY AS SHE GOES: CP Rail proceeding cautiously with railway crude business

May 1, 201310:32 AM BOE Report Staff

CP RailCP

 

By David Friend, The Canadian Press

TORONTO – The head of Canadian Pacific Railway (TSX:CP) says he believes there is enough room in the oil and gas industry for businesses to oil ship by rail and by pipeline.

However, Hunter Harrison told the company’s annual meeting that the railway is “proceeding cautiously” in the business and doesn’t plan to build long-term infrastructure for what could be a short-term boom.

“It’s an opportunity but it’s something we have to be pretty cautious about,” Harrison said from the meeting at a Toronto hotel.

“As things settle in, I think you’ll see some more growth than people have anticipated there,” he added.

CP Rail has been increasing crude shipments as Canadian oil producers look for ways to get their product to market as production ramps up from the oilsands and pipeline companies struggle to increase capacity quickly.

Enbridge has proposed expanding capacity on some pipes in the Great Lakes region and reverse the flow of another line between Montreal and southern Ontario, while TransCanada has looking to ship oil east with its Energy East Pipeline project and south to the U.S. with its Keystone XL pipeline project.

The U.S. project, which is awaiting government approval, has faced significant opposition from groups concerned about the damage a leak would do to the environment.

Harrison says the Keystone XL debate has drawn attention to railway service as an alternative which offers extra flexibility.

Shipping oil by rail was one of the key drivers behind the railway’s ability to deliver its best first-quarter results in its 132-year history.

The company expects to double its deliveries of crude oil 12 months earlier than previously forecast.

The former chief executive of Canadian National (TSX:CNR) met with shareholders for the first annual meeting since he was brought on board last summer after a protracted battle between the company’s former leadership and a major shareholder.

“What a difference a year makes,” Harrison said at the start of his speech.

The arrival of a new leader at CP Rail last year marked the end of a dramatic chapter in the company’s history. Then-CEO Fred Green stepped down just hours before the start of a shareholder meeting to appease the company’s largest shareholder, activist fund manager Bill Ackman and his investment company Pershing Square.

“This has been a bumpy road, but a successful road, and I want to personally thank all of you for the confidence that you’ve shown and the organization and this team,” Harrison said.

The changes have included bringing fellow CN executive Keith Creel over to Harrison’s new team at CP Rail where he serves as president and chief operating officer and is a likely successor to the CEO when he is expected to retire again in about three years.

“We’ve got a very competent, outstanding individual in place, and everybody feels better as a result,” Harrison said.

In December, the company disclosed a capital spending in the range of $1.0 billion to $1.1 billion over 2013, but Harrison said executives have since added to that with another $50 million to $70 million of financing for its line which runs for Moose Jaw to Chicago.

Shares of CP Rail were down 2.1 per cent, or $2.77 to $122.79 in afternoon trading on the Toronto Stock Exchange.

Crude by Rail Keystone XL

Follow the BOE Report
  • Facebook
  • Twitter
  • LinkedIn
Sign up for the BOE Report Daily Digest E-mail
Latest Headlines
  • Oil strengthens on prospect of OPEC+ maintaining supply cuts, drop in U.S. inventories
  • Vertex Resource Group Ltd. acquires Mad Oilfield Solutions
  • Column: Don’t believe the activists, natural gas stoves are fine to use
  • Ovintiv appoints Katherine L. Minyard to board of directors
  • Canadian Natural Resources beats profit estimates, boosts dividend

Return to Home
Alberta Gas
CAD/GJ
Market Data by TradingView





    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    • Foxterra
    BOE Network
    © 2021 Grobes Media Inc.