North America - There is no chance that key pipelines to the East and West Coast will be completed in the near future, leaving railways to fill the gap for Canadian crude shippers, says the chief financial officer of Canadian Pacific Railway Ltd.
 
"I don't see any chance of those pipelines being built any time soon.
 
Mr. Demosky said CP's forecast that it will haul 200,000 carloads of crude in 2015, up from 120,000 this year, is "conservative" despite falling oil prices.
 
"The demand from the industry when we went out and met with the shippers was actually much higher than that, something closer to probably 300,000 cars," he said.
 
Although the West Texas Intermediate (WTI) oil price has fallen about 25 percent from its summer highs, Mr. Demosky said he's not worried about what that will mean for railways.
 
The spread between WTI and prices for Canadian crude has narrowed to "more traditional" levels and that, combined with a lower loonie, means Canadian producers are getting essentially the same price they were 18 months to two years ago, Mr. Demosky said.
 
"The bulk of where our growth is going to come from is well-supported by the current price environment in Canada," he said.
 
Mr. Demosky also addressed the question of consolidation in the rail industry, which has been a favourite topic of his boss, Hunter Harrison, since competitor CSX Corporation rejected CP's advances last month.
 
"When you look at how constrained the North American rail network is currently, when do we reach the point where the last straw hits the camel's back and we hear the break?" he asked.
 
"Consolidation would alleviate some of those problems."
 
Last month, CP said it held "exploratory conversations" with CSX about a possible combination, but CSX wasn't receptive.
 
However, Mr. Harrison hasn't given up on the possibility of consolidation despite an uncertain regulatory environment.
 
No mergers between Class 1 railroads have been attempted since the last proposed combination, between Canadian National Railway and BNSF Railway, was thwarted by the U.S. Surface Transportation Board (STB) 15 years ago.
 
However, Mr. Demosky pointed out that the chair of the STB at the time, Linda Morgan, now sits on CP's board of directors.
 
"She wrote the rules," he said.
 
"If there's anyone who knows the intent better than her, I'd like to meet that person."

Kristine Owram.