Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Mar 9, 2022 18:39:27 GMT -4
I've never claimed to be the brightest person about anything - especially when it comes to politics and world affairs. I'm just wondering - in layman's terms - why are we paying record prices for gas with three huge increases in the past week - supposedly due to shortages from the Russian supply chain - yet we are able to increase oil exports to the US? I mean - are we actually selling oil to other countries cheaper than we do to our own people? Just looking for a simple explanation if possible. Canada can increase oil exports despite supposed shortage
|
|
|
Post by Captain Obvious on Mar 10, 2022 8:33:25 GMT -4
I've never claimed to be the brightest person about anything - especially when it comes to politics and world affairs. I'm just wondering - in layman's terms - why are we paying record prices for gas with three huge increases in the past week - supposedly due to shortages from the Russian supply chain - yet we are able to increase oil exports to the US? I mean - are we actually selling oil to other countries cheaper than we do to our own people? Just looking for a simple explanation if possible. Canada can increase oil exports despite supposed shortageMostly because oil companies want to see how far up they can push prices.
|
|
|
Post by Jack Bauer on Mar 10, 2022 8:45:38 GMT -4
Far from an oil and gas expert but here's my view on it:
You almost have to look at it as the world oil supply comes from many sources. We're 1 of them. But that doesn't necessarily guarantee us a super low cost necessarily as the overall price is still based on the world market.
Why is the global price high? Russian sanctions have meant countries killing pipelines and swearing off the Russian oil market. But this now means more countries are going after a smaller supply. Add in coming out of a pandemic and people wanting to travel and not be locked up combined with it being the coldest portion of winter and there's this huge demand trying to be met while telling the worlds largest exporter that their supply isn't welcome to be sold.
Canadian politicians will earn some political points by killing portions of gas taxes. Reality is with the prices so high our governments are making a lot of money as taxes are %'s so the higher the price the more money collected. But I think the $1.50/litre range is probably a new norm.
Whats the most interesting about the hype and fear of energy prices is the media is also reporting that its expected that tourism is going to be off the charts this summer. So the silver lining is energy prices are high but people seem to be working and making money.
But whats obvious is we need more programs for folks on fixed incomes. The old age and social assistance payments are no more because a commodity like gas or oil has doubled in price. Which means everything else we buy also goes up in price.
|
|
|
Post by yesisaiditfirst on Mar 10, 2022 9:27:55 GMT -4
Canada is part of the world market for oil and gas. The oil and gas drillers and refiners invest money up front to reap reward on world offer price.
Canada is not a country that penalizes its industries by asking for a reduced fee at home.
If you have 10 million barrels in your backyard and demand is high then you will get top dollar. The variance is the shipping fees to get it to market. If demand is low it's a product that generally stays in ground until margins go back up.
Most of our price problem is 1) world oil barons take less out of ground to make it scarce and control price. 2) in summer they make more available carefully to not run out and keep the supply competitive.
No one country can do it all. There will always be a strain on their refining capacity and delivery channels - only same number of boats and oil pipeline storage space. It's truly a place where available supply around the world keeps balance.
At this time of year some refineries are offline in maintenance mode. So they try to do that off peak.
The Russia oil coming out of supplies affects more Asia and Europe.
The real winner is China and the Saudis playing the market and happy to up production and release reserves. But individual Canadian investors as well. A good 30% of Canadian RRSP money is still ties to energy market we will all gain likely through this.
But at the pump I have always believed our taxes on fuel should be fixed to the liter not the price per liter. It's a slippery slope. High fuel cost govt takes in more tax but also when price dropped below a dollar they took in less from the consumer. I know more Canadians drive farther with lower price fuel so it probably equals but it hurts fuel dependent companies and people. Delivery drivers, trucking and that pushes everything up in price.
|
|
|
Post by gtsoc on Mar 10, 2022 10:13:25 GMT -4
Diesel and heating oil are predicted to drop by 50¢ and gasoline by 15¢ tonight in New Brunswick.
|
|
|
Post by Penguins23® on Mar 10, 2022 10:21:39 GMT -4
Canada is part of the world market for oil and gas. The oil and gas drillers and refiners invest money up front to reap reward on world offer price. Canada is not a country that penalizes its industries by asking for a reduced fee at home. If you have 10 million barrels in your backyard and demand is high then you will get top dollar. The variance is the shipping fees to get it to market. If demand is low it's a product that generally stays in ground until margins go back up. Most of our price problem is 1) world oil barons take less out of ground to make it scarce and control price. 2) in summer they make more available carefully to not run out and keep the supply competitive. No one country can do it all. There will always be a strain on their refining capacity and delivery channels - only same number of boats and oil pipeline storage space. It's truly a place where available supply around the world keeps balance. At this time of year some refineries are offline in maintenance mode. So they try to do that off peak. The Russia oil coming out of supplies affects more Asia and Europe. The real winner is China and the Saudis playing the market and happy to up production and release reserves. But individual Canadian investors as well. A good 30% of Canadian RRSP money is still ties to energy market we will all gain likely through this. But at the pump I have always believed our taxes on fuel should be fixed to the liter not the price per liter. It's a slippery slope. High fuel cost govt takes in more tax but also when price dropped below a dollar they took in less from the consumer. I know more Canadians drive farther with lower price fuel so it probably equals but it hurts fuel dependent companies and people. Delivery drivers, trucking and that pushes everything up in price. Aside from HST, the various taxes on fuel are fixed per litre.
|
|
|
Post by Jack Bauer on Mar 10, 2022 10:36:04 GMT -4
Diesel and heating oil are predicted to drop by 50¢ and gasoline by 15¢ tonight in New Brunswick. Did the province drop any taxes? Strange to see such large drops so soon after the big increases but hopefully the heating oil drop is big as there's going to be some cold and hungry people if oil is hitting $2/L.
|
|
|
Post by gtsoc on Mar 10, 2022 10:53:47 GMT -4
Diesel and heating oil are predicted to drop by 50¢ and gasoline by 15¢ tonight in New Brunswick. Did the province drop any taxes? Strange to see such large drops so soon after the big increases but hopefully the heating oil drop is big as there's going to be some cold and hungry people if oil is hitting $2/L. No taxes were dropped, yet. The decrease is a result of the prices falling on the market.
|
|
|
Post by Jack Bauer on Mar 10, 2022 10:56:06 GMT -4
Did the province drop any taxes? Strange to see such large drops so soon after the big increases but hopefully the heating oil drop is big as there's going to be some cold and hungry people if oil is hitting $2/L. No taxes were dropped, yet. The decrease is a result of the prices falling on the market. Wow. Very volatile market at the moment but happy that our seniors might see a break on their next fill up.
|
|
|
Post by bois on Mar 10, 2022 11:00:59 GMT -4
No taxes were dropped, yet. The decrease is a result of the prices falling on the market. Wow. Very volatile market at the moment but happy that our seniors might see a break on their next fill up. how so? with the way the market is fluctuating daily the companies aren't going to fill you up when it decreases
|
|
|
Post by lirette on Mar 10, 2022 11:08:24 GMT -4
Wow. Very volatile market at the moment but happy that our seniors might see a break on their next fill up. how so? with the way the market is fluctuating daily the companies aren't going to fill you up when it decreases I dont know about other provinces, but NB has a rule that forces the price drop to the consumer (if the market drops) on Fridays rather than wait for the following week.
|
|
|
Post by gtsoc on Mar 10, 2022 11:09:35 GMT -4
how so? with the way the market is fluctuating daily the companies aren't going to fill you up when it decreases I dont know about other provinces, but NB has a rule that forces the price drop to the consumer (if the market drops) on Fridays rather than wait for the following week. They can actually drop it (or increase it) any day of the week if the change is an increase or decrease greater than 7¢. I think last weekend there was back to back price hikes on Friday and Saturday.
|
|
|
Post by Jack Bauer on Mar 10, 2022 11:13:59 GMT -4
Wow. Very volatile market at the moment but happy that our seniors might see a break on their next fill up. how so? with the way the market is fluctuating daily the companies aren't going to fill you up when it decreases Not sure what you're getting at. The price dropping means seniors who might regularly get $200-$300 orders will get a lot more for their buck if the price drops by 25-30% today.
|
|
|
Post by Jack Bauer on Mar 10, 2022 11:15:15 GMT -4
how so? with the way the market is fluctuating daily the companies aren't going to fill you up when it decreases I dont know about other provinces, but NB has a rule that forces the price drop to the consumer (if the market drops) on Fridays rather than wait for the following week. Same as NS. Our prices change at midnight tonight. But there's been multiple hikes outside that schedule over the last 2 weeks as the world market has gone crazy.
|
|
|
Post by jimmy on Mar 10, 2022 11:18:37 GMT -4
Diesel and heating oil are predicted to drop by 50¢ and gasoline by 15¢ tonight in New Brunswick. Did the province drop any taxes? Strange to see such large drops so soon after the big increases but hopefully the heating oil drop is big as there's going to be some cold and hungry people if oil is hitting $2/L. I read this morning that the system is set up so that there is only a 30 hour lag between the New York market price of oil and consumer price in N.B. - NY price was down sharply yesterday, but was up this morning - so the Friday price break could be a one day sale.
|
|