Workers survey the damage of a pipeline leak in a field near Edinburg, N.D. (TC Energy Corp. via the Canadian Press)

Western oil prices slip as Keystone pipeline leak cleanup continues in North Dakota

TC Energy says about 4,300 barrels recovered from the 9,120 barrels estimated to have leaked

Prices for Western Canadian Select oil continued to soften on Monday as TC Energy Corp. reported recovering about half the crude that leaked from its Keystone pipeline in North Dakota last week.

Spokesman Terry Cuhna says about 4,300 barrels of oil have been recovered from the 9,120 barrels initially estimated to have leaked from the pipeline into a field near Edinburg, N.D., but there’s still no firm estimate of when it will be restored to service.

About 200 personnel are on site working on cleanup and remediation. TC Energy says the company expects to expose and extract the damaged section of pipe by the end of the week and send it to a government-approved laboratory for inspection.

Meanwhile, the loss of 590,000 barrels per day of pipeline capacity is being linked to deeper discounts for WCS, a blend of oilsands bitumen and lighter oil.

Oil brokerage Net Energy Exchange reports the discount to New York-traded West Texas Intermediate widened to US$22.35 per barrel on Monday, its weakest level this year. That’s up from US$22.00 on Friday and more than $5 higher than before the pipeline incident.

READ MORE: Keystone XL opponents point to North Dakota spill

In a note, analyst Michael Tran of RBC Capital Markets says there’s enough unused storage in the western Canadian oil handling system to mitigate impact of the outage for about 20 days but more rail would be needed to relieve pressure if the pipeline remains offline much longer.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Still no confirmed active COVID-19 cases in Red Deer, central zone

There are 15 new confirmed cases were in Alberta, the province said Thursday

Bashaw Farmers market ready for first event on June 12

Pandemic restrictions pushed start back more than a month

Halkirk 2 wind project will get new hearings

Alberta Court of Appeal sides with the appellants

Alberta discussing early Stage 2 economic relaunch

Nineteen new COVID-19 cases confirmed by government Wednesday

Israeli, Chinese policies ‘concern’ Canada, undermine freedom, says Trudeau

Israeli, Chinese policies ‘concern’ Canada, undermine freedom, says Trudeau

Alberta Opposition calls on government to consult on provincial parks

Alberta Opposition calls on government to consult on provincial parks

Alberta overhauls real estate regulator in wake of prior dysfunctional board

Alberta overhauls real estate regulator in wake of prior dysfunctional board

Alberta registrar reverses rejection, man gets to have FREE AB licence plate

Alberta registrar reverses rejection, man gets to have FREE AB licence plate

Alberta imposing steep penalties but no charges on first-time impaired drivers

Alberta imposing steep penalties but no charges on first-time impaired drivers

Most Read