The brilliant logic of the oil industry....

[Beerfish]

So oil briefly dropped below $100 a barrel today. So gas prices should be cheaper eh? After all that is always the excuse for prices going up, price of crude.

Well no, prices are projected to go up to $1.50 a litre very soon, as a matter of fact the price jumped by 7 cents a liter from noon until just now at a staion near me.

The reason? Well wholesalers in the states are charging more, you know because these storms, might, maybe just possibly will knock out some refinerys in the states. Should be no massive immediate effect here however the oil industry rep comes on rutherford and says that since the wholesalers in the states are going to charge more that we must do the same in Canada otherwise they will buy up all our cheap gas and send it down to the states. Thus even though our marketplace says that prices should remain the same or even go down a bit the wholesalers will be upping the cost and pocketing the proceeds becasue, well you know we have to protetct out gas supplies.....and after all it's all part of free trade which has benefitted us 10 times over.

What a freaking scam. Free trade has been great for the yanks total **** for us. No matter what the excuse these turkeys will jack prices up and pocket overwhelming record profits then have the total gall to whine like babies when we raise royalty rates a smidgen after giving them a holdiay fo years.

[Numberz]

Re: The brilliant logic of the oil industry....

I should mention that OPEC just got together and decided that since the price of oil dropped to under $100 that they would reduce their output by about 500,000 barrels of oil. Which restricts the supply meaning the price goes up UP UP.

[Deathsdoorstep]

Re: The brilliant logic of the oil industry....

1. North America does not get all of it's oil from the Middle East. There is a hurricane in the Gulf of Mexico that is restricting supply.

2. OPEC is just another reason to drill more in North America.

[Numberz]

Re: The brilliant logic of the oil industry....

Something really needs to be done about OPEC. I thought there were laws in place preventing this sort of thing from happening.

[Muley69]

Re: The brilliant logic of the oil industry....

In the past 14 months, the price of oil has more than doubled.

In the past 14 months, the price of gasoline has gone up 20 - 40%.



The growth in the price of the pumps, if it were truly tied solely to oil price, would be in the $2 per litre range.

[Footballhead]

Re: The brilliant logic of the oil industry....

www.pumptalk.ca

This gives a decent attempt at explaining gas prices. Oil is traded on a commodity market, so our refineries have to pay the same prices as everyone else. Gas typically follows this trend, but is actually also a commodity, and thus will occasionally trend differently due to other circumstances such as the hurricanes on the Gulf Coast. Gustav caused some production issues, but wouldn't have been a problem if not for Ike. Now this hurricane is coming towards another group of refineries, and some are being proactively shut down for safety reasons.

Everyone likes to blame big bad oil for the prices, but here in Canada, there's not a thing we can do - we don't control OPEC, so don't control the crude price, and we really don't refine that much oil, so we don't affect the price as much as the states do.

[GeeBrr]

Re: The brilliant logic of the oil industry....

We are getting ****ed right in the ass...I don't buy any other explanation for gas prices that don't include the word greed.

It s 147.9 here last time I checked. ****ing ridiculous.

[Bastinado]

Re: The brilliant logic of the oil industry....

In the past 14 months, the price of oil has more than doubled.

In the past 14 months, the price of gasoline has gone up 20 - 40%.



The growth in the price of the pumps, if it were truly tied solely to oil price, would be in the $2 per litre range.

Correct me if I'm wrong, but isn't the tax on gas a flat rate, so that part of the price should not increase. Then the retailer and refiner's cost should also not increase. So really only about half of the price of gas should fluctuate.

With crude oil doubling in price, you should only see fuel price increase by %50.

[Bastinado]

Re: The brilliant logic of the oil industry....

Double post... plus I can barely make sense of what I wrote, but I'm sure someone here can

[Muley69]

Re: The brilliant logic of the oil industry....

Gas is an arm and a leg.

No room on the bus.



I bike to work now.

[GeeBrr]

Re: The brilliant logic of the oil industry....

Is the C-train more wide spread than the LRT?

[Nanookster]

Re: The brilliant logic of the oil industry....

1. North America does not get all of it's oil from the Middle East. There is a hurricane in the Gulf of Mexico that is restricting supply.

2. OPEC is just another reason to drill more in North America.

The storm didn't effect the refineries. The US has enough fuel in reserve for a full year. The oil companies were probably chomping at the bit the minute the storm was announced. They create the frenzy and increased demand for fuel.

[Muley69]

Re: The brilliant logic of the oil industry....

Is the C-train more wide spread than the LRT?

The C-Train is MASSIVELY more wide spread than the LRT.

[GeeBrr]

Re: The brilliant logic of the oil industry....

The C-Train is MASSIVELY more wide spread than the LRT.

Figured as much. More familiar with Calgary than Edmonton though, so I wasn't sure.

[Rayminator]

Re: The brilliant logic of the oil industry....

Figured as much. More familiar with Calgary than Edmonton though, so I wasn't sure.

The flip side of that, though, is Calgary's road system is poorly designed. It's curvy roads in combination with the quadrant system make it a confusing place to drive in if you haven't lived there for a long time.

Our LRT is being expanded and slowly but surely we should catch up.