ramy
09-01-2005, 08:21 PM
By Jeffrey Jones
1 hour, 43 minutes ago
CALGARY, Alberta (*******) - Canada's oil companies are considering pushing back autumn maintenance at refineries as one way to help alleviate U.S. gasoline shortages caused by Hurricane Katrina, an industry official said on Thursday.
ADVERTISEMENT
However, there are no specific emergency provisions within the North American Free Trade Agreement under which more petroleum products or crude oil can be shipped to the United States, said Greg Stringham, vice-president of the Canadian Association of Petroleum Producers.
"We'll do whatever we can, as is humanly possible. If they can help identify what the needs are, we'll try and meet them," Stringham told *******.
CAPP, the industry's main lobby group, was involved in talks with the Canadian, Alberta and U.S. governments on Thursday to determine ways to lessen the energy crisis that has followed the hurricane's rampage through the Gulf of Mexico.
Canada jockeys with Saudi Arabia, Mexico and Venezuela as top oil supplier to the United States and is the No. 1 foreign natural gas supplier. The industry normally produces every drop all it can, so has little extra fuel in reserve to send.
Pushing back maintenance at refineries as well as at pipelines will keep Canada's capacity to supply U.S. markets as large as possible when the supplies are needed most, Stringham said.
Canadian Prime Minister Paul Martin said he had asked Alberta Premier Ralph Klein if there are ways the country's biggest oil-producing province can help the U.S. energy situation.
"The premier said he would look at this," Martin told reporters in Calgary.
"What we're doing is to simply say to Canadians in a wide range of areas: 'Look, is there something, that if the Americans request it, or it is needed, that you could do?"'
Crude production in the Gulf of Mexico remained cut by more than 90 percent three days after Katrina ripped through the region. Eight refineries in the area were shut down and 11 others were operating at reduced rates.
Most Canadian oil exports to the United States are shipped via the Enbridge Inc. pipeline to the Midwest.
"The biggest thing that seems to be out right now is the refinery capacity down there (the Gulf Coast), and they are also having problems getting oil from the Gulf Coast to some of the Midwest refineries," Stringham said.
He cautioned, however, that Canada already produces as much crude, petroleum products and natural gas as capacity allows.
Enbridge spokesman Jim Rennie said the company's 2 million barrel a day mainline, the world's longest petroleum pipeline system, is pumping near capacity, a situation that had already prompted expansion plans. Those are not close to completion.
High oil and gas prices will spark more drilling in the already-booming western Canada producing region, but Stringham said additional output will take time.
Even before the hurricane damaged U.S. Gulf production facilities, Canadian markets were bracing for record high natural gas prices amid tight North American supplies.
Canada, as a member of the International Energy Agency, would take part in emergency oil sharing operations, but those are to be used in longer-term disruptions, Stringham said.
In addition to oil and gas, officials are discussing sending Canadian power utility crews to help restore the electricity needed to run Gulf Coast refineries and pipelines.
http://news.yahoo.com/s/nm/20050901/wl_canada_nm/canada_energy_canada_katrina_col
1 hour, 43 minutes ago
CALGARY, Alberta (*******) - Canada's oil companies are considering pushing back autumn maintenance at refineries as one way to help alleviate U.S. gasoline shortages caused by Hurricane Katrina, an industry official said on Thursday.
ADVERTISEMENT
However, there are no specific emergency provisions within the North American Free Trade Agreement under which more petroleum products or crude oil can be shipped to the United States, said Greg Stringham, vice-president of the Canadian Association of Petroleum Producers.
"We'll do whatever we can, as is humanly possible. If they can help identify what the needs are, we'll try and meet them," Stringham told *******.
CAPP, the industry's main lobby group, was involved in talks with the Canadian, Alberta and U.S. governments on Thursday to determine ways to lessen the energy crisis that has followed the hurricane's rampage through the Gulf of Mexico.
Canada jockeys with Saudi Arabia, Mexico and Venezuela as top oil supplier to the United States and is the No. 1 foreign natural gas supplier. The industry normally produces every drop all it can, so has little extra fuel in reserve to send.
Pushing back maintenance at refineries as well as at pipelines will keep Canada's capacity to supply U.S. markets as large as possible when the supplies are needed most, Stringham said.
Canadian Prime Minister Paul Martin said he had asked Alberta Premier Ralph Klein if there are ways the country's biggest oil-producing province can help the U.S. energy situation.
"The premier said he would look at this," Martin told reporters in Calgary.
"What we're doing is to simply say to Canadians in a wide range of areas: 'Look, is there something, that if the Americans request it, or it is needed, that you could do?"'
Crude production in the Gulf of Mexico remained cut by more than 90 percent three days after Katrina ripped through the region. Eight refineries in the area were shut down and 11 others were operating at reduced rates.
Most Canadian oil exports to the United States are shipped via the Enbridge Inc. pipeline to the Midwest.
"The biggest thing that seems to be out right now is the refinery capacity down there (the Gulf Coast), and they are also having problems getting oil from the Gulf Coast to some of the Midwest refineries," Stringham said.
He cautioned, however, that Canada already produces as much crude, petroleum products and natural gas as capacity allows.
Enbridge spokesman Jim Rennie said the company's 2 million barrel a day mainline, the world's longest petroleum pipeline system, is pumping near capacity, a situation that had already prompted expansion plans. Those are not close to completion.
High oil and gas prices will spark more drilling in the already-booming western Canada producing region, but Stringham said additional output will take time.
Even before the hurricane damaged U.S. Gulf production facilities, Canadian markets were bracing for record high natural gas prices amid tight North American supplies.
Canada, as a member of the International Energy Agency, would take part in emergency oil sharing operations, but those are to be used in longer-term disruptions, Stringham said.
In addition to oil and gas, officials are discussing sending Canadian power utility crews to help restore the electricity needed to run Gulf Coast refineries and pipelines.
http://news.yahoo.com/s/nm/20050901/wl_canada_nm/canada_energy_canada_katrina_col