‘This is not the time to garden’: Calgary expected to face water crunch for another week
Calgarians rose to the occasion and cut their water consumption Friday, but there’s still work to do, city officials said at a media briefing Saturday morning.
Although plenty of attention has been given to the rising price of gasoline and natural gas, Canadian propane prices are also skyrocketing – a surge analysts say will have a big impact on rural Canadians this winter.
Propane, produced as a by-product of natural gas, has seen a dramatic price increase over the last three months, with prices in Edmonton, for example, soaring to US$1.40 per gallon from roughly US$0.25 per gallon, according to ATB Capital Markets.
This seven-year high prompted a stark warning from research firm IHS Markit, who warned that U.S. propane prices are so high and supplies so scarce that the market appears headed for “armageddon” this winter, according to Bloomberg.
“The reason the prices are really high right now is that inventories are very, very low,” commodities analyst Rory Johnston told CTVNews.ca by phone Thursday.
“Both because of the drop in oil and natural gas production because of COVID and also because of energy prices globally, we've been exporting a lot of this fuel, propane and natural gas. At the same time we’re not producing as much domestically in North America.”
Johnston says a large part of the increase is due to overseas demand, where prices are even higher than North America.
“Propane inventories even lower than they are for natural gas. And even lower still, because exports have grown even more dramatically in propane then they have in natural gas,” he explained.
“Propane exports are now something like 60 per cent of the overall U.S. market for propane, or it is still only 15 per cent for natural gas.”
Extreme weather has also played a role in the energy prices in North America. Gas prices were initially in late September driven up thanks to Hurricane Ida, which shut down a good portion of U.S. oil and natural gas production in late August.
And with frigid winters expected both here at home and overseas, it doesn’t look like prices will let up any time soon.
“Honestly, we will know when the weather forecast get better,” Johnston said. “It seems unlikely that the crisis or rolling crises that we're seeing in Europe and Asia are going to let up any time soon unless there's a very mild winter… because then those two stocks finally get a chance to catch up will get that much more time for production to grow again.”
With energy prices continuing to rise, consumers all over Canada will likely face higher heating costs this winter. While natural gas is the primary energy source for more than half of Canadian homes, nearly 1.4 million households rely on heating oil or other fuels, including propane, to heat their homes, especially those in rural areas.
“Propane is the main one for rural and off grid communities,” said Johnston. “It’s going to be much more expensive to fill those propane tanks this winter – and it’s not even cold yet.”
Calgarians rose to the occasion and cut their water consumption Friday, but there’s still work to do, city officials said at a media briefing Saturday morning.
Israel on Saturday carried out its largest hostage rescue operation since the latest war with Hamas began, taking four to safety out of central Gaza amid the military's heavy air and ground assault. At least 94 dead Palestinians, including children, were brought to local hospitals, a health official said.
A freighter in Lake Superior hit something underwater on Saturday and started taking on water, according to the U.S. Coast Guard.
Decorated figure skater Tessa Virtue and Toronto Maple Leaf Morgan Rielly have hired a lobbyist as they seek permission to paint the exterior of their Rosedale heritage home, despite objections from city staff.
An Ontario man says he’s still considering selling his house, despite this week’s interest rate cut, with his mortgage payments set to leap over $2,000 next month.
Kate, the Princess of Wales, apologized for missing Saturday's final rehearsal before the Trooping the Color parade in honor of the king's birthday.
Authorities are using boats to patrol the ocean and warning swimmers about sharks this weekend along Florida's Gulf Coast, where three people were hurt in two separate shark attacks on Friday.
A thick and heavy fog has been laying siege to the skies over St. John’s, and drawing a heavy toll from some airplane passengers who’ve seen their travel plans pummelled with no end in sight.
A federal judge in New York has given the go-ahead to a Long Island woman's class action lawsuit that claims consumers are being duped by Cold Stone Creamery when they purchase certain flavours that "do not contain their represented ingredients."
Showing off the latest purchase in his Eaton's collection, Corey Quintaine joked he is rebuilding the former flagship store that used to sit at 320 Portage Avenue one Facebook Marketplace purchase at a time.
After learning about food security at school, 11-year-old Violette Ferguson wants fresh eggs and to change the rules around chickens in the city.
An Ontario powerlifter caught a mild cold last year. Six days later, he was fighting for his life in the ICU.
Marking a milestone, Lakeshore resident Olga White celebrated her 107th birthday in style Wednesday.
The municipality of Tantramar, N.B., is holding a sale to get rid of surplus items it acquired after the Town of Sackville amalgamated with smaller communities last year.
For several weeks, a mysterious social media user has apparently been leaving $50 bills hidden across Metro Vancouver.
A statue dedicated to the Royal Regina Rifles Regiment has been officially unveiled in France just ahead of the 80th anniversary of D-Day.
A Cape Breton is this year's recipient of the McEuen Scholarship, which gives him basically a full ride to the medical school at the University of St. Andrews in Scotland.
Mounties in Kelowna nabbed a would-be burglar with an apparent sweet tooth over the weekend.