Gas prices are expected to reach an annual high this summer across Canada and into fall, with more than one factor causing the increase, experts say.
I recall reading an article a few years ago speculating that big oil barons are starting to see the green revolution coming and, paired with reducing global oil supplies, they were going to slow production, increase prices and take a much profits as much as possible as oil is pushed second place to electrcity. I wonder if OPEC reducing supply has anything to do with these alleged goals.
You’re dead on. They’re artificially lowering production to keep prices high. We can’t get off this dinosaur juice soon enough.
It is thought that Saudi Arabia, which is currently chairing Opec+, needs to have the price of Brent crude rising to $80 (£65) a barrel or more to cover its government spending and import bill.
It’s not just that, but the Saudis are trying to pivot hard towards new industries. They see their entire government collapsing if they can’t find a new source of revenue before oil demand collapses and their savings disappear.
Saudi Arabia basically bribed their civilians to stay in power by subsidizing gas, electricity, and water to the point that all three are basically free in the country, while their migrant workers are basically slave labour. The moment any of this changes, there’s going to be a coup, and they see the clock ticking with oil demands having peaked in much of the world already.
RealLifeLore has recently released a video talking about their situation, though not so much on the oil.
this is exactly what is happening. Even in the US. The big ones are buying up all the little ones and stopping their drilling programs entirely. They want to slow the output, reduce competition to kill the service industry… Then years from now when our production begins to plummet and prices skyrocket politicians will act real surprised.
Can’t wait for this to come about actually.
It’s not the drilling that’s the issue, it’s the refining. The prices of crude isn’t so high on the market itself, but the post-refined products themselves. American refineries are at capacity and have been for at least a decade now, yet they aren’t doing anything to increase production.
And as for Canada, we don’t have much when it comes to refining capacity in the first place.
no drilling is the issue lol. Shale wells deplete crazy fast. The decline rate is 70% in the first 3 years. We are reaching peak production. If you reduce the number of operators through buyouts it’s only going to make it impossible to crank out new production quickly.
I remember seeing an article stating that the oil companies here in the US won’t lower prices because they fear losing investors. That is their reasoning for the high prices.
What is sad is the cost per barrel is the same as it was back in the 80’s and 90’s where we were paying $1.89 per gallon.
Talk about fleecing the consumer. The only people surviving at these prices are the producers and investors.
This is the best summary I could come up with:
Gas prices are expected to reach an annual high this summer across Canada and into fall, with more than one factor causing the increase, experts say.
The July Consumer Price Index (CPI) report from Statistics Canada “mainly” blamed an increase in inflation on gasoline.
Michael Manjuris, professor and chair of Global Management Studies at Toronto Metropolitan University, told CTVNews.ca in an interview poor weather and a lack of supply are to blame.
One factor behind higher gas prices, Manjuris said, is a recent decision from the Organization of the Petroleum Exporting Countries (OPEC), which controls crude oil supply to most of the world.
Manjuris says some weather factors, like extreme heat, will not be an issue in the next few months, however, gas prices will remain elevated.
The heightened prices have been climbing for the past six months, Pedro Antunes, chief economist at the Conference Board of Canada told CTV News Channel Tuesday.
I’m a bot and I’m open source!
Or, and hear me out, we go to the oil company owners and remove them. Eh? Slashing prices!
We used to have that. Look up the history of PetroCan.
Created as a crown Corp by a liberal government with the intention of keepingahandleon prices, and then privatized by a conservative government (because that’s what rhy do to crown corps).
No I mean SLASH the PRICES by REMOVING the PROBLEM
🔪🔪🔪🔪🔪🔪🔪🔪🔪🔪
and then privatized by a conservative government
If it is any consolation, said party never won again after that and eventually threw in the towel when winning even 12 seats proved to be a struggle.
I’m so glad my most recent car purchase was a prius C. I have been saving $30 everytime I fill up since I bought it.
Gas prices will not fall until the oil sector in Canada has the freedom to operate and expand without the government trying to destroy the industry.
And inflation needs to get under control.
It is insane that Canada is rich in oil and decides to import so much oil from the middle east.
They bought you a pipeline.
And Canadian oil leaves Canada. Increasing output may help global prices and petro-province revenue, but it won’t do a thing for local prices.
And climate change is real.
And to clarify. Canada is a net exporter of oil. But most of that oil goes west and to port. About 10% of the oil we import is from the middle east. The majority of the oil we import is from the US. And we mainly import oil because it’s cheaper to import it than it is to move that much oil east.
At this point it really doesn’t make sense to build infrastructure to to move oil east, and really since oil is one big market, us selling and then buying doesn’t really matter…
The article pretty much spells it out - OPEC controls the price of oil globally through their massive hand in the supply side of the industry. Even if you get your wish and have O&G completely deregulate here in Canada, the reality is that they aren’t going to make a dent in global oil prices regardless of output. If we produce a ton of oil, OPEC simply shuts their taps further until the prices equalize to a point that benefits the members of the cartel.
Other than a reduction in taxes on gasoline at the pump, Canada has very little effective means of changing the cost of oil globally.
Unless you’re suggesting we turn into Venezuela #2 and we turn all oil companies and wells into government property, build a crap ton of refining capacity on the tax payer’s penny and sell the resulting oil products at cost / at a loss. But frankly, that outcome is even worse as now we’d have 50 cents/L gas, but all our other taxes would go through the roof.
Must be hard to swallow with all that capitalist dick in your mouth. How’s the minimum wage job treating you?
Learn to control your emotions
