U.S. President Donald Trump has issued a presidential permit for a private-sector proposal to build a railway from Canada’s oil sands to ports in Alaska, a project that still faces numerous hurdles.
Trump said over the weekend on Twitter he would issue the permit, which he signed on Sept. 28 but was released by the White House late on Sept. 29. Projects that cross the U.S. border require presidential permits.
The Alaska-Alberta Railway Development Corp. (A2A Rail) project would move Alberta crude 1,600 miles (2,570 km) to the Alaskan coast, as well as freight in the other direction.
Backers of the $17 billion project hope it will be in service by the end of the decade.
It could carry up to 2 million bbl/d of oil, along with potash, sulphur and grain that often back up at Canada's Vancouver, British Columbia, port, said Mead Treadwell, A2A's vice-chair, Alaska.
A2A would require numerous regulatory clearances in the U.S. and Canada that would likely take years.
Recommended Reading
E&P Highlights: May 13, 2024
2024-05-13 - Here’s a roundup of the latest E&P headlines, with a couple fields coming online, as well as new contract awards.
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-09 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-10 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.