Off Topic Oil ... Crushed

The price of gasoline is not immediately reflected with the price of oil. Much of the gasoline production is Based upon on oil prices from 1-2 months ago when the barrel was purchased. A second reason why the cost is at 70 cents is due to the cut in rates of processing at our refineries. No sense in making the product if nobody is driving. Lastly, we pay taxes on gasoline. People bitch about taxes but also want all the services when they need them ( hospitals, health care, education, roads, etc). This is a huge country with extensive infrastructure requirements. Just because we take it for granted in southern Ontario, the poor bigger in northern Saskatchewan does not. If I want lower taxes, give up medical facilities, schools and the other “perks” we enjoy and depend.
 
Lachine60 said:
The price of gasoline is not immediately reflected with the price of oil. Much of the gasoline production is Based upon on oil prices from 1-2 months ago when the barrel was purchased. A second reason why the cost is at 70 cents is due to the cut in rates of processing at our refineries. No sense in making the product if nobody is driving. Lastly, we pay taxes on gasoline. People bitch about taxes but also want all the services when they need them ( hospitals, health care, education, roads, etc). This is a huge country with extensive infrastructure requirements. Just because we take it for granted in southern Ontario, the poor bigger in northern Saskatchewan does not. If I want lower taxes, give up medical facilities, schools and the other “perks” we enjoy and depend.
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Yes taxes are to pay for infrastructure of course its needed, but oil price goes down gas prices takes time to follow, oil price goes up gas prices are up next day ?
Also why Saudis dont pay carbon tax on crude oil sold to Canada ? but Canadian companies pay carbon tax on crude oil ?
Its ?y to me
 
Excellent point on why prices go up when oil jumps. I can’t explain or justify it. I am not sure if the carbon tax is a way to deter the use of fossil fuels. I have enjoyed the fruits of working in the oil industry my entire adult life but even I believe we need to move away from oil dependency. The technology is out there for electricity but our government and industry have to get on board for the infrastructure to allow electrical power. There is no way we will get there with the government sitting in Washington right now.
 
o_O Oh my goodness the oil price has dropped to $1.04 a barrel... this can't be good something is going to bust. It was $2.68 a barrel in 1960. ?
 
stomp said:
How much was a fill-up back then @Wave Runner ? :p
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Not sure in 1960 but in 1967 I bought my first car it was a 1965 Ford 500 V8 with a 3-in the tree stick shift. It had a 20 imperial gallon gas tank and I can remember I filled it up every week at Jordon Grey gas station in London for $6 give or take 20 cents. ? Hey bob my wife has been watching the oil prices all day and it was down to 15 cents a barrel and right at this moment is minus $1.20 a barrel. Yes you heard correct now minus $1.43... what the heck is going on! :eek: Update... minus $3.70 a barrel. What?????
 
This was on Twitter... does that mean they will actually pay you $40.32 a barrel to take it off their hands? o_O
Anybody have some extra 45 gallon drums laying around? :p

Today # WTI crashed from an open of $17.85/ barrel to a low of -$40.32/ barrel. What is going? Oil storage tanks are full to the brim. Mark this day on your calendar. You will never see a day like it again.
 
I was talking to a friend of mine who lives in Edmonton on Saturday. I paid $0.73/L at the Can Tire by home on Friday night. ( don't know what it is today, haven't left the house but it's been bouncing between $0.69/L at its lowest that I've seen to $0.89/L at it's highest lately) Cost me $23 to fill the car from just below 1/4 tank. Asked him what the price was out there, told me $0.58/L last time he filled his car.
 
Lachine60 said:
Excellent point on why prices go up when oil jumps. I can’t explain or justify it. I am not sure if the carbon tax is a way to deter the use of fossil fuels. I have enjoyed the fruits of working in the oil industry my entire adult life but even I believe we need to move away from oil dependency. The technology is out there for electricity but our government and industry have to get on board for the infrastructure to allow electrical power. There is no way we will get there with the government sitting in Washington right now.
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OK, this will sting, but as you mention your knowledge of the oil industry, the electrical grid needs to be re-aligned, and seriously up-dated.
Pricing has to change? sorry to those that don't like question marks and correct spelling.
If you live in London, for example, your power comes in to Buchanan trans. station directly from a major tower line, grid feeds out to a dense population and you pay so much per kw? So go north to cottage country, or a back road here in farm country, or for that Long Point, Bruce ect? It's going to cost more to get the juice there, but it doesn't? A city transformer feeds 30 places, compared to a cottage country line that runs say 8K threw bush/down a road to nowhere, to be used a few times a yr, to feed someones cottage, maybe they should pay alittle more? You don't, unless its a private service?
 
As of today, 75 cents in Kitchener... 17 years ago when I came to Canada, the gas was 62 cents.
 
The upstream business in the oil industry is in tough shape. Cost to take oil out of the northern tar sands is approximately $80/barrel. Much of the countries income is from oil royalties. Hurts the whole country!
 
Somebody is getting rich with this and its not hard working tax paying Canadians ... paid 80 cenrlts this morning when prices should be around 55..according to cost...
 
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