Alberta Premier Rachel Notley is calling on the Federal Government to increase rail capacity to help move Alberta oil to the coast and help producers get a better deal.
Notley says while waiting for pipelines to be built, they need to take steps to close the price differential.
"We need to take a close look at the tools available to us," said Notley. "To close the differential where it is feasible. Like for example increasing the efficiencies and availability of rail capacity to move our products."
Notley suggests the Federal Government invest in more oil railcars and locomotives following a meeting with energy industry leaders in Calgary on Monday, October 22.
"What we are looking at right now is a punishing differential. There is still analyzes out there outstanding in terms of how long we can have this happening, but if it continues it is going to have a significant impact, quite frankly on Ottawa's bottom line."
Notley says with the Federal Government writing off 2.6 billion dollars in outstanding loans to the auto industry, they can support the oil industry with smart investments to help close the differential and return billions of dollars to the Canadian economy.
"We must find a way to build our takeaway capacity for our oil and gas right now, we cannot sustain a differential, I think it is about 45 dollars today and that is not a thing we can sustain over the long term."
Notley says the government is in the midst of putting together a specific business case that they will be taking to the federal government to lay out the specific costs of adding new railway capacity.
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