Diesel Demand Outstrips Supply

Thursday, October 16, 2008 03:58 AM

Prince George, B.C. – Some trucking companies are finding there are some challenges to finding diesel fuel at card lock pumps, especially in the north east part of B.C.

Petro Canada Spokesperson, Sneh Seetal says Petro Canada planned for a refit of its Edmonton refinery “The refinery is being refitted to accept oil sands product instead of a refined product. Based on previous volumes at this time of the year, we built up our inventory and made some arrangements with third party suppliers. Some of those third party arrangements fell through and those supplies were not delivered.”

She says in addition to the failure of third party deliveries, there were some unplanned shutdowns at other diesel producing plants, plus, an increased demand by the industrial sector. Seetal says, simply put, “The demand outstripped the available supply”

While Petro Canada’s Edmonton refinery is expected to be ready by the end of this month, because the start up of the plant involves the start up of a virtually new operation, the plant is not expected to be up to full capacity until the end of the year.

“There is one key thing to remember” says Seetal “this is having no effect on diesel supplies at the regular retail sites, it is impacting our large commercial customers.” By that, she means card lock operations. “We are in daily contact with our customers and they have been very patient with us. We advise them of which sites may face shortages so they can make the necessary arrangements. We want to advise them of all their options.”

Petro Canada isn’t alone when it comes to refinery issues. Last week, Suncor Energy Inc started preparations to bring it’s processing unit at its oil sands plant back on line. Imperial Oil was rationing diesel to some of its customers because of work underway at its Edmonton area refinery.

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Posted on Thursday, October 16, 2008 03:58 AM in News by 250 News

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Comments

Posted by: acrider54 on October 16 2008 5:29 AM

Anything to drive prices up

Posted by: beesknees on October 16 2008 5:43 AM

I for one, am really looking forward to seeing higher prices at the pump again. Our economy doesn't do as well when oil comes down, as it has in the recent months.

Additionally, and the real reason I like to see a higher oil price, is that my oil stocks are way down. Mama needs a new pair of dancing shoes, and the kids are going getting tired of mac & cheese.

Posted by: RUEZ on October 16 2008 7:54 AM

beesknees, you are either joking(which I hope) or you have some serious issues.

Posted by: Shellshadow on October 16 2008 8:09 AM

LOLOLOL Okayyyyy!

Posted by: He speaks on October 16 2008 10:58 AM

Beesknees, it cost only $12/ barrell to get the oil out of the tarsands, this includes the cost of the investment made. This does not include the federal government and the sweet heart deal they made with the companies to make the investments.

Tar sands use to be the toughest place to get oil out of, thus was put on the self for so long. Thus how easy is it to pull it out of the ground... etc what is it really costing the companies after all the taxes. Even at $20/ barrel they make money. Reason why Exxon and the likes are posting $40,000,000,000.00 profits.

Oil prices at $60.00 barrel will still be a reasonable price for everyone concerned.

Posted by: Harbinger on October 16 2008 11:59 AM

Take a minute and think of how diamond prices are kept where they are. Same game. Diamond? Just high end coal.

Posted by: beesknees on October 17 2008 3:31 PM

He speaks: you shouldn't be spreading (mis)information like that. Breakeven cost for oilsands is $85.00/barrel. The Saudis need about $65.00/barrel. That's why the Saudis are in control of OPEC - they hold the biggest stick. And that's why they're coming to the table next week, because they can see their profits coming down too far; recently a barrel of oil was selling in the neighbourhood of $70.00. Production cuts will be announced after the meeting.

If you watch the stock market, you will see a big jump the day they announce that. Higher oil prices are good for the economy. And, as I've mentioned before, they'll be good for my stock portfolio (really good).

If oil goes up to above $100/barrel, everybody will be happy. Sure, there'll be some whiners out there, buying their expensive hot-dogs, cigarettes, energy drinks, and bottled water, at the 7-11, complaining about the high price of gas at the pump, but they deserve to pay the higher price for being fools.

Which side of the fence are you, He speaks? Are you a whiner, or happy to make some money in the stock market?

An additional benefit of higher oil prices, is that it stimulates alternative energy research and development. I am also a investor in solar, wind power stocks and fuel cell stocks. Recently, the low price of oil has seen a lot of people dump the alternative energy stocks they hold, which I can tell you is no good for that industry. Research costs a lot of money, and companies don't see a return for many years. Investment in those companies is important, as it's their only source of revenue while they develop whatever alternative energy product they're working on. Oh, and obviously, I would like to see my investment in those companies provide me with a healthy return, for when I need the money.

So, after reading my little argument here, I'm sure you all agree, that a higher price for oil is what we need, no, actually what we demand.