OIL- Almost Free!

[farming101]

Stupid question I know but

If the world is saving billions a day on cheap crude,
what are the savings being spent on, welfare?

[bucket]

Yup welfare to the corporations because they have hit the poorhouse.

Banks are raising rates in canada because they can't make it thru on a billion dollar quarterly profit.

[biglentil]

Why is a pail of Rotella 70 bucks?

[ajl]

In the US consumers are spending the savings on taxes as higher state tax for fuel to pay for roads are common. Higher healthcare spending as well. Keep in mind that US most health care plans include prescription drug coverage which partially explains their very high cost. They are also spending the savings on paying down debt which is good for consumer demand in the long term.

[hobbyfrmr]

Welfare and warfare.

[wmoebis]

And still no refineries getting built. There must be money in refining at gas and diesel prices at pumps.

So much for value added in Canada.

[stonepicker]

How many years would it take to build a refinery in western canada today? 7 years? We can't even get a pipeline built to eastern canada, instead eastern can. imports oil from overseas. Doesn't make a whole lot of sense.

[farming101]

The upgrader refinery being built in Alberta will process
50,000 barrels a day.
8.5 billion to build, or more.

[burnt]

Stonepicker - doesn't make a whole lot of sense to whom?

Did some thinking about your statement and came up with this thought -

According to StatsCan, 2014 gross fuel consumption (gasoline and diesel) on which road taxes were paid was 61,000,000,000 liters.

According to GasBuddy.com figures, the Canadian public is paying roughly a 10 -15 cent/liter premium over American users, largely due to lack of competition in refining and retailing.

In other words, processors are reaping an additional 6.1 BILLION per year in profits by staying with the status quo.

Now if we as cattle farmers or grain producers could even just triple or quadruple our profits by producing less and running obsolete equipment, how much incentive would we have to increase or upgrade our capacities beyond the bare essentials?

Ad to the equation that governments collect more tax dollars on higher prices, why would they make it attractive to take measures that would reduce their revenues?

Please tell me that I have this all wrong.