Diesel shortage affects industry
Neil Scott, With files from Sylvia MacBean
Leader-Post
Friday, October 17, 2008
Saskatchewan truckers haven't been getting enough lately -- and it could be bad news for the province's economy.
Al Rosseker, executive director of the Saskatchewan Trucking Association, said problems at several Alberta refineries have combined to put diesel fuel in short supply.
"Basically, there are problems with three refineries in Alberta,'' Rosseker said.
Two of those refineries have temporarily shut down diesel production during a shutdown period while a third is not producing at full capacity.
"There's not enough diesel,'' Rosseker said.
While trucks continue to roll down Saskatchewan highways, Rosseker said some truckers have had to reduce operations because of a shortage of fuel. Smaller trucking companies particularly are having trouble finding enough diesel fuel, Rosseker said.
The situation could have ramifications for Saskatchewan consumers, as slowdowns in trucking deliveries lead to a shortage of products on store shelves, Rosseker said.
More than 90 per cent of the products sold in Saskatchewan are moved by truck, he said.
"When the trucks stop, the economy stops,'' he said.
The situation could even affect Christmas sales, if merchandise designed to be sold as Christmas gifts doesn't reach store shelves in time, Rosseker said.
The problem has existed for at least a couple of months and indications are that it will not be fully resolved until the end of November, Rosseker said. He noted products designed to be sold at Christmas need to be delivered to stores before the end of November.
One of the refineries that is now shut down is the Petro-Canada refinery in Edmonton.
Sneh Seetal, a spokesperson for Petro-Canada, said that temporary shutdown was planned as part of a reconfiguration of the plant.
Arrangements were made to maintain a supply of diesel for customers during the shutdown, Seetal said, but there was unfortunately some unexpected problems at other refineries which threw the contingency plans into disarray.
Service in Saskatchewan and across Western Canada has been affected, as incidents have occurred in which some service stations have run out of diesel fuel, she said.
Petro-Canada regrets the inconvenience experienced by customers, Seetal said. "Our customers have been very patient,'' she added.
The process of getting the Edmonton refinery started up again is slated to begin at the end of this month, said Seetal, who noted that process should hopefully be completed by the end of November.
Seetal said the supply problems with diesel fuel have been compounded by a strong demand for diesel fuel in Western Canada's booming economy.
The diesel shortage is also affecting oil drilling activity in southeastern Saskatchewan.
"I heard that as of Saturday, 28 rigs were shut down. Nobody can get diesel," said Shianne McArthur, administrative assistant at Eagle Drilling. "Fortunately, we were able to get enough for our rigs."
Alfie Hoffman of Precision Drilling Trust in Calgary said the company is watching the situation closely.
"Yes, we are aware that there are diesel shortages and we are managing our business accordingly," Hoffman said.
AI
