You would think refineries would plan their maintenance so as not to coincide with other plants.
A West Coast supply problem
The high prices now seen in Vancouver are part of interruptions in regional supply, said Antweiler.
The economist pointed to the Sturgeon Refinery outside Edmonton, Alta., which from Aug. 8 to Sept. 23 closed for scheduled maintenance, inspections, renovations and upgrades.
At the same time, four refineries shut down in California, including one unplanned at the Chevron Richmond Refinery after it reportedly experienced power problems, reported the
Santa Rosa Press Democwrat Tuesday.
Meanwhile, there have been other maintenance shutdowns at Washington State’s Ferndale refinery and the Olympic pipeline, which serves refineries in the Pacific Northwest. That has meant oil that could otherwise flow north is staying in local markets.
Even a fire that led to
two fatalities earlier this month at an Oregon, Ohio, refinery is having an effect on prices out west, said Antweiler.
It’s all coming at a time when
U.S. crude oil production is down over a million barrels a day across the U.S. compared to pre-pandemic levels, added the UBC energy expert.
“It’s all conspiring to create a spike in prices,” he said.