Analysts See Surplus Pipeline Capacity for Canada – The Energy Mix
Even with the global economy rebounding faster than expected,
at least from the short-term carbon emission reductions that
accompanied the pandemic lockdown, there may be no permanent relief
ahead for Canadian pipeliners. “The short-term surplus should dissipate
over the next year or so as North American and global oil demand
rebounds,” Petroleum Economist writes. “But it is likely to become an
issue again by 2023 for a different reason—a lack of growth in Western
Canadian oil production, just as an array of small-scale and big-ticket
crude pipeline projects come online.”
at least from the short-term carbon emission reductions that
accompanied the pandemic lockdown, there may be no permanent relief
ahead for Canadian pipeliners. “The short-term surplus should dissipate
over the next year or so as North American and global oil demand
rebounds,” Petroleum Economist writes. “But it is likely to become an
issue again by 2023 for a different reason—a lack of growth in Western
Canadian oil production, just as an array of small-scale and big-ticket
crude pipeline projects come online.”
The UK-based publication isn’t alone
in its analysis. Last week, Moody’s Investors Service said it had
downgraded its outlook for pipeline operators in the “midstream” energy
sector from stable to negative for the first time, over concerns about
the “aftershocks” the industry will face in the wake of the pandemic,
industry newsletter Rigzone reports.
