Most of the problems that Baytex is facing are due to bottleneck and other related transportation issues. There is frankly not enough pipeline to transport Canadian crude to the areas that need it. Q4 2012 saw a major 'glut' of oil accumulating in Western Canada from a sudden drop in demand from Midwestern refineries due to maintenance. However, there has been some recent good news. Refiners, such as Northern Tier Energy (NTI) and Phillips 66 (PSX) are taking advantage of cheap Canadian crude to boost profits. US imports of Canadian crude have increased by more than 250,000 bbl/d since November 2012. The Seaway Pipeline expansion in January 2013 is providing a potential 100,000 bbl/d outlet for Canadian heavy oil to the US Gulf Coast refineries. In addition, other refineries, such as the BP Whiting refinery in Indianapolis and the Marathon Detroit refinery, are repositioning themselves to add much more heavy oil to their feedstock mix. Refiners and oil producers are using rail cars to transport this cheap oil to where it is needed.