Petroleum analyst keeping an eye on pipeline problems

One petroleum analyst thinks Saskatchewan drivers can breathe a sigh of relief — for now — even though pipeline issues are causing problems in Eastern Canada.

En-Pro International chief petroleum analyst Roger McKnight said he has heard rumours of people in areas of Nova Scotia having to ration fuel due to issues with the Colonial Pipeline. That pipeline, which is one of the largest in the U.S., was hit by a cyber attack last week.

Due to the issues, areas in Eastern Canada have been feeling a crunch at the pumps.

“That may be of some disturbance to people in Western Canada, but I don’t think you should have any fear whatsoever. The price of gasoline west of Thunder Bay shouldn’t be affected by this at all,” McKnight said.

He said he anticipates the Colonial Pipeline issues to be resolved in the next few weeks.

“Americans are pretty good at sorting out problems and this is a major problem so far as consumers are concerned,” McKnight said.

But while McKnight doesn’t expect that issue to affect drivers in Western Canada, there is another pipeline to keep an eye on.

Michigan’s governor is ordering the Line 5 pipeline to shut down production. While it is continuing to run, the looming possibility of the taps being turned off remains and it could affect prices in the west.

“That may back up inventories and demand for crude and all other services out of Alberta, but that’s a political situation I think will be resolved not tomorrow (and) not next week but over the next couple of months,” McKnight said.

“At this stage, it’s not a problem, but if it does theoretically come off the rails, it will affect the Alberta crude supply situation.”

While drivers might have seen the price of gasoline go up recently, McKnight says that probably doesn’t have much to do with pipelines, but the fact that this is normally when the price of gas is at its peak.

“The driving season has been delayed by the pandemic but the demand is starting to come back, so prices are starting to edge up. But that’s basically because the theory is that this pandemic is coming to a close,” McKnight said.