CIBC says Canadian gasoline could spike to $1.75 a litre if storms ravage Gulf

Wow even the banks are fear-mongering...must be trying to earn back some money from the Sub-prime thing!!!

Here's something I've never understood. People have tried to explain it to me. I still don't get it.

Why does it have to matter to Canada what happens in the gulf, if we have plenty of oil to supply ourselves?

As it's been explained to me it has something to do with the fact we don't have enough refineries in Canada to supply ourselves. Why can't we build them?

There's also that proportionality thing which seems to feed into this somehow.



Gas Proportionality

But I still don't get it, even if the answer is the price of oil is tied into the markets, external to our control, I still don't get it. Why does it have to be? If we're talking about an essential, and limited resource here, why can't we just treat it more like hydro, and look after ourselves first, then decide how much we want to sell? And why is it you can't even consider that possibility without somebody getting pissed off (which is what usually happens when it's brought up)?

(BTW...slightly OT, but speaking of proportionality, did anybody ever consider this?)



I sometimes wonder if people even know about that, because it's never brought up.

That's why IF Obama were to actually win, his
advisers will put the brakes on his
're-negotiate NAFTA' election rhetoric...it works
both ways.

Here's another one I'm wondering about since I've been listening to Sarah Palin speak. She's saying Alaska has trillions of feet of natural gas congress won't let the state provide. Does that mean America is going to suck up all ours, then maybe it will open up Alaska's? Does proportionality work both ways?

I heard people slapping T Boone Pickens on the back - so to speak - here at CKA, and saying good show on his plan to get all Americans running natural gas powered vehicles. Isn't he really talking about pillaging a Canadian natural resource? Why do we think that's such a great idea?

Americans, by their nature, will use up everybody elses resources first before they use their own. It is a policy that will enable them to maintain superpower status for years to come, the single largest user of fuels on the planet is the US Military.

Obama's solution to the USA's energy shortage is inflate your tires and get a tune up.

Its called the global economy. How it works is if you have something to sell, you search the world for the place where is costs the most. Then you set that as the price everyone pays.

And that costs little and actually works, unlike McCain's solutions.....

The only rational reason is because of my full size Ford truck.

Although, it is true that consumer consumption should be reduced. But after all, with all the Canadian oil, we should be able to be self sufficient. Refineries are the answer. Stop selling crude to the US at a reduced price while we are getting it back at full price. Only an opinion.

oil prices spiked more than $3 today, but fell back - Aug 31st/08 due to Gustav

U.S. crude traded $1.24 higher to $116.70 a barrel.

http://money.cnn.com/2008/08/31/markets ... 2008083115

You hit the nail on the head. A couple of days ago I watched some analyst talking about why gas prices were still so high and his explination was that alot of companies who trade in oil lost billions in the sub prime mortgage meltdown and were trying to recoup their losses through high gas prices.

So it would appear that some Canadian banks belong to that erstwhile group of unintelligent investors who are trying to save their asses by predicting a run on gas and hoping it comes to pass.

The current situation would have the US import natural gas, mainly from Canada first because Canadian businesses would get higher prices due to proximity. American politics seems to be to fix something at the last desperate minute. So it's very probable that Alaska to be the last baston of natural gas reserves.

Pikens mentions using US gas because the plan also includes ramping up domestic production, currently growing at 5% a year. It is very possible for the US to go back to self sufficiency, even if reserves aren't that great since the plan would be to go off natural gas after 30 years.

It's a good idea for Canada because you are getting the best prices for natural gas. Natural gas prices are good right now, and there is actually alot of natural gas in the world but the distribution network isn't set up globally. Canada can take advantage of this by being the first ones out and use the tax revenue wisely to invest in infrastructure. It would only be bad if the global supplies are flooded, which could happen.

This isn't really relevant, but I read an interesting one on the Pickens plan the other day. It's in PDF though.

Picking on Pickens

If gas hits 1.75 just when I start having to drive 1200 clicks a week I'm going to lose my fuken mind.