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Author Topic: Real price of Canadian oil should be on charts Back to Topics
zmjb37

Rookie Author
Calgary

Posts:23
Points:16,565
Joined:Oct 2010
Message Posted: Feb 2, 2013 10:48:01 AM

Alberta has no way of getting its oil to market efficiently, so the supply and demand balance means we don't get a good price for our oil. Canadian oil is selling for $20-30 cheaper than the benchmark West Texas Intermediate. Canadian retailers are using the high global oil price as an excuse to drive up local costs. This needs to be exposed.
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zmjb37
Rookie Author Calgary

Posts:23
Points:16,565
Joined:Oct 2010
Message Posted: Feb 6, 2013 11:49:00 PM

Thanks Don.

A good benchmark Canadian crude price for your charts would be the "Western Canada Select" established in 2004. It typically sells at a $30+ discount compared to West Texas Intermediate.

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CampKohler
Champion Author Sacramento

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Points:2,048,215
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Message Posted: Feb 6, 2013 6:01:39 PM

After reading this suggestion several times during the last week I couldn't quite get a handle on what zmjb37 meant, but after reading Don's post, it became clear that what he was talking about was the use of the U.S. crude price on the charts for Canada. By the "real price," he means the "Canadian price."

This suggestion has been added to the Suggestion Tracking List as a new subject.

It would be a good subject for the GB blog to discuss the relationship between Canadian and U.S. (production, transportation, processing, etc.) and how it affects prices in Canada and U.S. There are a lot a variables in there, perhaps too many for anyone to have real handle on how much what happens in one country affects the other. But if GB knows, it would be a feather its cap to present a subject that is not been seen in the local papers.

How about a giant GasBuddy spreadsheet where you plug in pipeline X fails, refinery Y cuts output and we see what happens to U.S. and Canadian retail prices? No? Too much to ask for, I suppose.
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Don
Moderator
Message Posted: Feb 6, 2013 3:16:36 PM

Hi zmjb37,

Thanks for your feedback, it does make sense to have the CAN cost per barrel of oil on the Canadian sites.

One probable explanation as to why the US $/barrel is shown on all sites that could be considered is that at the time the sites were first developed the US oil market reached (or still reaches) further into the international market. The US imports/exports a larger amount of oil than most countries, so the US price would be considered a benchmark. The US cost per barrel can have a large influence on Canadian prices.

That or it could have been the only information on-hand, sources for oil prices (in USD) are widely more available from sources such as Bloomberg etc.

I hope the explanation helps.

I've noted your suggestion for the development team.

-Don



[Edited by: Don at 2/6/2013 3:17:20 PM EST]
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zmjb37
Rookie Author Calgary

Posts:23
Points:16,565
Joined:Oct 2010
Message Posted: Feb 3, 2013 5:19:49 PM

Canadian retailers are using the global price of oil as an excuse to inflate their prices. The reality is that our oil is "trapped" in the province because we have no way to get it to market and take advantage of global prices. Canadian oil is only $60 a barrel right now, and not really subject to price fluctuations. We should not be paying $1.10/litre for gasoline. GasBuddy should have an option to display the price of Canadian oil on its charts.
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Gas_Buddy
Champion Author Maryland

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Message Posted: Feb 2, 2013 1:20:08 PM

Are you asking that Gas Buddy "expose" that Alberta has no efficient oil distribution system?

It seems that any industry or institution/business that doesn't have a way of getting its product to market efficiently means it's unlikely it will get as good a price for it's products as possible.

I'm not sure what this "suggestion" expects Gas Buddy to do about Alberta's marketing efficiency. Perhaps this can be explained better. (Explained before people add this to suggestion lists, not necessarily understanding the full suggestion, that is.)
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