Oil Patch and Alberta | Page 3 | GTAMotorcycle.com

Oil Patch and Alberta

No business epitomizes the laws of supply and demand like oil. Years ago we ran into a crisis where demand exceeded supply -- proce goes up as buyers compete for available product. After 30 years of 'drill baby, drill' conservation efforts, and and increased engine efficiencies we are in a supply exceeds demand -- hence the current discounted oil prices.

Th dynamics are changing and for Saudi's to stay in the game they need to squeeze out competition. The best way to do that is to drop their price to the point where competition stops pumping and exploring.

Their big threat isn't Canada or the US as out oil is expensive to extract. It's Russia and Venezuela -- both with big reserves of oil that is cheap to recover.

I expect oil prices to stay low for a while as both Russia and the Saudi's are in the long game. Gonna hurt the seven sisters, but benefit consumers.
 
Mad Mike said:
No business epitomizes the laws of supply and demand like oil. Years ago we ran into a crisis where demand exceeded supply -- proce goes up as buyers compete for available product. After 30 years of 'drill baby, drill' conservation efforts, and and increased engine efficiencies we are in a supply exceeds demand -- hence the current discounted oil prices.

Th dynamics are changing and for Saudi's to stay in the game they need to squeeze out competition. The best way to do that is to drop their price to the point where competition stops pumping and exploring.

Their big threat isn't Canada or the US as out oil is expensive to extract. It's Russia and Venezuela -- both with big reserves of oil that is cheap to recover.

I expect oil prices to stay low for a while as both Russia and the Saudi's are in the long game. Gonna hurt the seven sisters, but benefit consumers.
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We always seem to relate crude oil to gasoline prices. Roads are paved with the dregs of the refinery processes. Petroleum byproducts make tar, asphalt, paraffin wax, and lubricating oils. It is also used in chemicals, such as fertilizer, perfume, insecticides, soap, and vitamin capsules. Oil is the base for plastics used in everything from heart valves to plastic bags. Thx Wiki.

Go back a generation or so and plastics were not as common. Almost everything came in glass or tinned containers. Recycling would have been easier but we didn't do it. Now we have plastic everything and every polymerized variant is a recycling headache.
jc100 says $3.98 a barrel. Nine cents a gallon? Two cents a liter? Seriously?

Tar sands efficiency and pollution aren't looking good.

This whole oil thing needs a head shake. Mega US dollars are invested in the stuff and it's traded in US dollars.

I'm totally lost in where this is going.
 
the environmental disaster left up there will be nasty
there was supposed to be a legacy fund to reclaim the land
aprox 686 square km of toxic moonscape
and only $820 million paid into it by the oil co's
estimates are between 10 and 15 billion to clean up

toxic lakes that will leak into the waterways
and as the bitumen is very high in sulfur
it has to be removed before heading for refining

this is just one mine mining project: Syncrude
3 giant pyramids of solid sulfur, each the size of city blocks

there is no market for this sulfur, so it's just piled up
it has a nasty toxic run-off that is currently controlled
when the oil co's pull out, the sulfur will end up in ground water

maybe Alberta is right, we will need an east/west pipeline
but it will be carrying water west, not oil east

so that'll be a boom for us out here as water is worth more than oil

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If there is too much supply right now does this mean they are putting what they have in reserves, which might mean once this situation passes they will still have a lot of supply and prices will stay low. Or will they just be artificially increased in price to make up for the difference in lost profits/taxes.
 
sburns said:
If there is too much supply right now does this mean they are putting what they have in reserves, which might mean once this situation passes they will still have a lot of supply and prices will stay low. Or will they just be artificially increased in price to make up for the difference in lost profits/taxes.
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Reserves are used primarily as a national defense safeguard by the USA. Keeps them safe if the world supply gets cutoff for any reason, also used to stabilize prices when OPEC ***** with the laws of supply and demand. It's not typically used as a way to keep prices low.
 
the major refinery areas of Edmonton and Hardesty have storage
they were pretty much full by end of January with oil @ $50 (hoping that it would go back up)
they are at capacity now since the OPEC/Covid double whammy
Enbridge charges around $10/bbl to pipeline it south from there
about twice what's is worth - this is how Texas oil is $20 and heavy Alberta oil is $5

the mine sites have some of their own storage but they will be full as well
as long as oil stays this cheap there is no point in mining/storing it there at all
leave it in the ground, might need it some day when all the easy stuff is gone
 
funny thing is that what comes back from being shipped to the states is not just refined oil, all the leach that is waste also is piped back in another pipeline
 
Alberta oil ends up in Sarnia via pipeline
refineries there service Ontario and Quebec by rail and truck

I don't know what difference it makes what side of the Great Lakes the pipeline is on?
once it leaves the ground it belongs to the Oil Co's and we pay market rate for it

I suppose it would be better to have Irving in New Brunswick not refining Saudi Oil
but do we need a entirely new pipeline across the country when the stuff is already pipelined to Ontario?

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The end of day answer is capacity/volume. While oil is getting from point A to B via existing pipelines and via train today they want (actually need) more.

Harper and Kenney had 10 years in power and did very little to address this. Oil was high then so no one cared, when oil dropped in price (as it always does!) to make the same money they need to move more of it, capacity was not there. Here is the common lesson, high oil prices, industry and government cashed in instead of investing in the future (building that additional capacity to deal with a future and all but guaranteed price drop), now it is low it is all JT's and Ontario's fault that Harper and Kenney did not build for the future.

Of course, the Irving family also does not want that extra capacity as they do not need it and getting more Western Heavy Sour Crude is more expensive to process than Saudi Sweet Light Crude, more western oil for them equals lower profits. That is also all JT's and Ontario's fault...
 
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oil rallies today 25%
after the imbecile tweets about the bromance with his buddy
the homicidal savage

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Who wants oil? Western Canadian Select was -0.01 $/barrel last night. Yup, they pay you to take it. They want JT to help. There's not much that can be done with that. If something is on the edge, a little top up helps. They are not on the edge. There is not enough money in the Country to prop that up until the world price of oil goes up substantially.

https://twitter.com/x/status/1252193171813150721
 
Wait...Alberta is Canada's friend again? Old buddy, old pal...hey, got any spare change?

And just like that...Wexit is suddenly ancient history I guess.

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That website is "mysteriously" offline now even though the article that image came from was from just this past October.
 
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PrivatePilot said:
Wait...Alberta is Canada's friend again? Old buddy, old pal...hey, got any spare change?

And just like that...Wexit is suddenly ancient history I guess.

593482582001_6096889337001_6096890268001-vs.jpg


Event that website is "mysteriously" offline now even though the article that image came from was from just this past October.
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Fair weather friends at the best of times.
 
albertafightsback.com

Alberta Fights Back

albertafightsback.com albertafightsback.com

This other wexit party website is still online. Pretty laughable to read it now however since 95% of their arguments are now completely moot.

Oh look...click on the page on that site showing "our team", and hey..."mysteriously" offline.

....old buddy...old pal.
 
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