Page 5 - NorthAmOil Week 10 2022
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NorthAmOil COMMENTARY NorthAmOil
March by around 20%, though the impact of the Oil company officials speaking at the confer-
force majeure is thought to be muted because ence criticised Biden for cancelling the Keystone
output is already due to be reduced as a result of XL pipeline – which would have added takea-
the planned maintenance work. way capacity between the oil sands and the US
Turnarounds typically last 1-2 months and – when he took office last year.
require additional workers to carry them out. “Connecting the third-largest reserves of oil
The pandemic disrupted turnaround schedules with your greatest ally and trade partner, to me,
over the past two years, and this makes carry- was just such an obvious thing,” Cenovus Ener-
ing out any previously delayed maintenance all gy’s CEO, Alex Pourbaix, said. “It was just such
the more essential. Additionally, the planning a tragedy on so many levels that it became just
involved and the current tight labour market such a whipping boy for this entire debate about
make it challenging to reschedule any planned climate change,” he said of Keystone XL.
maintenance work again. Oil companies are not the only ones talking Little said at
Speaking at the CERAWeek by IHS Markit about Keystone XL once again. Alberta Premier
conference in Houston this week, Suncor’s CEO, Jason Kenney said this week that it could still be CERAWeek that
Mark Little, said while there may be scope for possible to revive the pipeline. Canadian crude
minor adjustments to turnaround schedules, “We could turn this around in less than a
facilities could not avoid essential maintenance. year,” Kenney said during a news conference on could replace
“I’m not expecting any major changes, just March 7 – the same day crude prices peaked at
because no one’s going to put their assets at risk $139 per barrel before dropping back somewhat. around a third of
from an integrity perspective,” Little said. However, Keystone XL’s operator, TC Energy,
has already wound up the project and Kenney the oil that the US
Looking ahead acknowledged that the US government would normally imports
Jitters over the short-term impact of the turna- need to “de-risk” it financially before it could
rounds on supply come as industry supporters be revived. Such a development appears highly from Russia.
increasingly call for Canada step up exports to unlikely, and remains at odds with Biden’s over-
the US to offset lost Russian volumes. all position on fossil fuel infrastructure.
Little said at CERAWeek that Canadian Like pipeline operators, oil sands producers
crude could replace around a third of the oil also appear hesitant to pursue major new pro-
that the US normally imports from Russia. His jects, despite the talk on the role Canadian oil
comments came after US President Joe Biden could play in energy security.
banned imports of Russian crude earlier this If crude prices keep rising, though, and the
week. (See: US bans imports of Russian oil and supply crunch worsens, a rethink of current
gas, page XX) plans in Canada cannot be ruled out.
Week 10 10•March•2022 www. NEWSBASE .com P5
