Oil for Asia, higher gas prices in Canada due to a lack of local refining capacity

[damngrumpy]

This is nothing new, we have known for decades there would be shortage of refined crude.
The environmentalists want to take us back to a simpler time, when you holiday to the Prairie
will be by covered wagon. Those environmentalists of a simpler time want to take us back to
the simpler time of farming with horses instead of tractors. That's where you use half the
food supply field to feed the horses instead of using the economy of tractor fuel.

Transportation costs are higher, commuter costs are higher, and not just in Canada but in the
United States, as well. Oh we can't have a refinery because its dangerous, it is not friendly
and at the same time these people stop and complain about the cost of fuel on the way to the
latest demonstration. We need to get on with producing a fuel supply in our own country that
will bring costs down and provide steady full time jobs. Who wants a full time job at good pay?
It is time for everyone else to speak up and demand that we build more refineries.

 

[dumpthemonarchy]

I would support a made in Canada price for domestic consumption that reflects a fair profit on the cost of production and anything over and above our domestic needs can be exported to the highest bidder. Provided the governments get a fair royalty and taxes.

BANANA - build absolutely nothing anywhere near anyone

I kind of agree. Canada has been exporting resources for a long time because there not supposed to sit there forever and rural people need the jobs. The govt really has to set up a commission to ensure we get an ample supply of our resources first. There is no pure free market. All the NDP does though is support higher immigration from Asia because if they don't they are white racist pigs.

Wrong, this is very very new. Size matters. Business wets their pants over the Chinese market. The idea was to sell them millions of shirts and shoes, but the tables got turned, now China makes the shoes and sells them to us. I say we have a white bizman peril to worry about.

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CBC and CTV show the Nymex crude future price, right now its $94
Here Bloomberg show the North Sea Brent price, it is $110.

China is paying $16 more per barrle than we pay in Canada. Yet we still can't get enough refining capacity. Business has totally sold us out. And the govt gives them subsidies.

Energy & Oil Prices: Natural Gas, Electricity and Oil - Bloomberg

 

[petros]

Different grades.

 

[MHz]

More refineries would not lower the price as the cost of building the facility would be made back by raising prices.

Even making vehicles that get better gas mileage will not happen as the refineries start with a certain product and after processing it they have a certain quanity of finished products to 'get rid of' for $$$. If they start having vehicles that don't use all the gasoline then there is a glut and storage facilities get full and gas does have a shelf life.

 

[dumpthemonarchy]

More refineries would not lower the price as the cost of building the facility would be made back by raising prices.

Even making vehicles that get better gas mileage will not happen as the refineries start with a certain product and after processing it they have a certain quanity of finished products to 'get rid of' for $$$. If they start having vehicles that don't use all the gasoline then there is a glut and storage facilities get full and gas does have a shelf life.

Still a very vague. Profits are high in the oil business. Sounds like someone thinks demand is going to dry up one day. Who's going to get rid of their car? Electrics are a long way off. It's just greed.

 

[damngrumpy]

I agree that greed plays a big role when it comes to banks, day traders, and other investment
companies. In the oil industry, the wages are very good. The reason is not greed however.
wages are high because the design, and planning is subject to ever increasing environmental
demands, and sensitive land area, like watersheds, and difficult land mass areas.
Getting supplies to remote locations costs a lot of money and sometimes depending on location
these supplies are required nearly a year ahead of time.
There are pipelines to install and people to transport to and from remote locations. Not to mention
the years of exploration before hand.
The cost to find, and develop the oil site in the first place is enormous and there really isn't a great
deal left over.
Take into consideration the taxes you pay on the fuel at the pump. There are all those taxes for
environmental causes, for transit that drivers don't use but pay for, and development of trans link
rail.
It is easy to point to greed but the hard facts of life and the work that produces a gallon of fuel don't
demonstrate that greed is the prime factor. And yes the companies need to make a profit.
Should you not believe that look at Greece, they haven't made a profit on anything for years and
we know what their fate holds don't we.

 

[dumpthemonarchy]

Wages were high for bankers a long time ago. Now they are higher despite all those regulations because they would say they have to work so much harder to work through (manipulate) those regulations. Caanda likes to pay the good capitalist lackey servant. That's not why we elect them. In Canada, compared to China, Russia, Africa and othr coutnries and continents, profits are guaranteed, yet the public still gets hosed.