So-called "air barrels" are caused when oilpatch players or traders book more pipeline space than they physically need, resulting in leftover pipeline space. (Jeff McIntosh/Canadian Press)Because there is so much competition for pipeline space these days, pipelines can become overbooked, causing the pipeline company to then cut allocations across the board. and into the U.S. midwest, is the focus of concern that pipeline space is potentially being misused. "Over-nominations inflate the demand for pipeline capacity and pipeline apportionment on the Enbridge Mainline and negatively impact the ability of producers to access pipeline capacity to sell their monthly oil production," Devon wrote. Enbridge tried to revise how it allocates space on its pipeline system earlier this year, but quickly scrapped the plan.

Source: CBC News December 06, 2018 09:00 UTC