Alberta could begin shipping more oil to Europe

According to a recent report by Bloomberg News, the Spanish oil company Repsol is considering purchasing as much as half-a-million barrels of heavy crude a month from the western province, and in turn, transporting it to Europe through rail and shipping through Montreal’s ports.

The company is currently considering multiple locations including New Jersey, as it struggles to make up the production lost in Venezuela and Mexico.

If a deal is made, it could be seen as a boon to the Kenney government in Alberta, as European deals involving Canadian oil are rare. For example, only 400,000 barrels of Alberta oil was sent in the last year to the U.K, one of Canada’s largest European trading partners.

The shipment could also revive moral in the overall industry which has recently seen former giants such as Encana move south, where the regulatory environment, as well as access to capital, is seen as more favourable.