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Here Is how experts say the Keystone oil spill could impact gas Rates, Canadian oil

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Here Is how experts say the Keystone oil spill could impact gas Rates, Canadian oil

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Keystone pipeline leaks more than 1.4M litres of petroleum in North Dakota

1:57
Keystone XL borrows?

Keystone XL borrows?
The business said there were no injuries and it was investigating the cause of this breach.The pipeline has been shut down because the leak.In addition to raising environmental concerns, the spill has prompted questions about how, and if, it will affect the Canadian petroleum industry. Will oil costs be affected and will see an increase in gas costs as the pump?



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Here is what experts say:Patrick DeHaan, mind of patroleum investigation at GasBuddy, states while the amount of oil lost is a”drop in the bucket” in relation to how much petroleum the pipeline transfers, from a spill perspective, the episode is”fairly significant,” and the implications are”fairly notable. It’s a component of a 4,324-kilometre system that is also to incorporate the 8 billion XL pipeline, designed to transfer the oil to terminals on the Gulf Coast from western Canada. “The simple fact that the pipeline has closed down now as a result of this spill, it seems like there may be downtime of several days, if not more, where this possibly influenced portion of this pipeline where this breach occurred,” DeHaan said. “And surely because this pipeline carries Canadian crude oil down into the Unites States to refineries in the Midwest, this could start to result in some small backup in petroleum distribution in Canada which may negatively affect the price of Canadian oil. “TC Energy hasn’t said when pipeline operations would resume, but advised shippers that support to U.S. Midwest refiners would remain closed during the toaster. The lineup could remain closed for at least according market sources told Reuters on Thursday.

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DeHaan says the more the pipeline is closed, the bigger the problem could become. “I’d say in an issue of over five days, seven days it’d start to become meaningful, therefore it would happen in fairly short order,” he said. “And a pipeline breach of the size — which calls into question the line’s ethics, therefore it may take more than that. “So I believe we’re right on the cusp of having a bigger backup difficulty in Canada at this stage.”

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Nebraska Supreme Court Requires Keystone XL Pipeline

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Based on Roger McKnight, chief petroleum analyst using En-Pro International Inc., there is a high demand currently for Canadian crude petroleum, especially by refiners on the Gulf Coast and in the Midwest, because of the low cost. He said there is a high need for what is called distillates such as jet fuel, heating oil and diesel fuel as we go into the winter months.He states refiners are”attempting to shake up the refineries to prepare for winter,” raising the requirement for this kind of crude petroleum. “But U.S. inventories of crude are really very, very healthy at this time. “So it depends upon how much time it takes for them to correct this and how the stock exchange really reacts to the news.”

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Keystone pipeline shut down in North Dakota following spill that is possible

He states if dealers looking at the futures market believe this will be a significant supply interruption, then it might cause a small spike in the price of crude, gas and diesel.However, ” he states the pipeline would need to remain shut for more than two weeks for there to be a sizable impact.McKnight says he doesn’t think that will happen because officials will want to clean the spill and repair the pipeline as quickly as possible”because it is in their best interest” to do so. This isn’t a major, important earth-shattering spill or leak,” he said. “It’s a minor one in terms of spill levels. “Will gas prices be affected?According to DeHaan, as of right now, the spill will likely only have”slight” impact on gas costs in the Great Lakes region at the U.S.. He says that is because nearly all the oil doesn’t end up back in Canada. “But even then, until this pipeline is down for a time period, that would amount to over weekly. I would not say there would be widespread implications as a consequence of its shutdown,” he said. “But then, there would likely be more of a pricing impact in the U.S. simply because the breach at the pipeline severed the connection from Canadian oil areas to U.S. refineries. “DeHaan says it is likely the spill won’t have any impact, or may have”very limited impact” on gas costs in Canada. “I would not expect that most drivers would feel really any impact from this,” he said.He added, however, that some parts of Western Ontario, such as Sarnia, could observe a”very small” impact because refiners at the Great Lakes serve those areas. However, he says if the pipeline remains shut for an extended time period, Canadians may start to see”slight impacts” in the pump.

2:08
Montana judge cubes Keystone XL pipeline construction

Montana judge cubes Keystone XL pipeline construction
McKnight, also, says the spill won’t have any affects on gas rates. “Matter of fact, I’m calling for costs to really fall west of Thunder Bay over the short term,” he said,”since the Midwest refinery, they are up to 90 percent potential, which is a six percent increase over last week.” — With files from The Associated Press and Reuters


(C) 2019 Global News, a division of Corus Entertainment Inc..



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