Crude oil discount? Explain

[the big wheel]

What are the real reasons for the discount?
Some saying it's just the distance some saying Alberta crude is more costly to process. Someone have a flowchart or simple explanation of where oil from here is going and who's paying what for it?
Is it because that's all it's really worth?
Is it like farming it's produce more at a lower price?
Yet here we're getting hammered by oil
Companies in our own country.
If it's that cheap we should be getting the benefit of cheap oil wouldn't this cause is to be so competitive all businesses and processing of other products would come here? Shouldn't that be the plan? Instead of supplying other countries an endless cheap oil supply?
How are the pipelines going to change this price? I could see transmountain accessing differnt markets but is there a guarantee price will be higher?

[bucket]

What are the real reasons for the discount?
Some saying it's just the distance some saying Alberta crude is more costly to process. Someone have a flowchart or simple explanation of where oil from here is going and who's paying what for it?
Is it because that's all it's really worth?
Is it like farming it's produce more at a lower price?
Yet here we're getting hammered by oil
Companies in our own country.
If it's that cheap we should be getting the benefit of cheap oil wouldn't this cause is to be so competitive all businesses and processing of other products would come here? Shouldn't that be the plan? Instead of supplying other countries an endless cheap oil supply?
How are the pipelines going to change this price? I could see transmountain accessing differnt markets but is there a guarantee price will be higher?

The answer Alex is ....because they can....

[farmaholic]

A land locked suppy too far from more market options and the with the ability to produce more than we ourselves can consume.

Compare that to our Ag situation and you have the same dilemma...ever notice the prices Mallee quotes? Aussie grain producers seem to be able to capture a larger percentage of the world price...one reason would be freight advantage, others?

Canadians are really taking it up the ass at the pumps...the public should be outraged. Maybe boycotting refining company gas stations might be a start. Or a rotating boycott of all fuel supply companies. Or a public awareness campaign of the cost of domestic crude versus pump prices.

It is absolutely news worthy....and not just a two minute spot one day. An on going story for a public daily reminder. So and so declined an interview is all you would here...maybe a public picket line at the refineries would help.

My fuel costs(current) and fertilizer(next year's needs) costs have become stupid. It almost feels like 2008 again.

[farmaholic]

The answer Alex is ....because they can....

I'm going to buzz in because you got it wrong bucket...

Answer..."what is" because they can, Alex.

[bucket]

I'm going to buzz in because you got it wrong bucket...

Answer..."what is" because they can, Alex.

Yes right....now I will clean up coffee spew ....thanks for the chuckle....

[mcfarms]

Distance to market, lack of processing availability shipping constraints and production outstripping shipping capacity. Loans to repay hence cash flow at any cost and sales at theft levels to create said cash flow.
Sound familiar?

[Guest]

here's an idea ,get a bunch of like minded people together and start a cooperative movement . then get this coop to build a refinery in sask . then we can use western Canada "cheap oil" to make cheap gas and fuel . then buisness and people will flock here because of the cheap environment .
oh wait ,it's already been done ........wtf?.......
time for a divorce to get rid of that growth to the east
time to punt federated coop and start over
just think how much money could go to a refinery with what they're screwing us on fuel ?

[SASKFARMER3]

CJME yesterday had Dan McTeague from Gas Buddie. This guy is a long time Liberal I have watched for years.

He explained it really easy.

https://twitter.com/GasBuddyDan

Trudeau had a slip up at the beginning when he said we will phase out the Tar Sands. THen the next day he was back peddling and trying to say he was misspoken.

That is the first clue. The government wants to kill oil and gas. Real special.

The second is to buy a pipeline and not ever get it finished or gift it to the First Nations. It will fail and fail miserably.

The third is Saudi is in bed with Trudeau and follow the money.

The fourth useless fools running cities and provinces trying to stop pipelines.

Fifth the USA will not pay for a product that they are the only buyer for. That's how Americans work.

6th Idiots in Vancouver and TO that vote liberal and don't own Cars and take the Bus to work and live in Center of the universe. They are brainwashed that the new Green Movement is great. ME myself and I generation.

7th AS the Spend fool in Ottawa runs out of Cash and oil was King for the Federal and Provincial Coffers. The people will slowly realize they were taken for a big joke by a foolish fool.

Sad with max it might take 4 more years and huge unemployment and basically Canada is Dead.

Basically, this is Trudeau's Baby and Raphy and All the liberal Believers.

[jazz]

inferior product, higher impurities and metals, harder to move, more energy intensive to process, refineries to handle are far away etc etc. Lots of reasons its not top quality crude and deserving of some discount but not what we are currently seeing.

The chinese want it though but unrefined. They want their own facilities and people to upgrade it as usual thats why refining here is not an option. Thats the only market for this stuff.

But the oil companies are to blame as well when they shifted canadas oil business to mostly oil sands. There is lots of light sweet crude in the Bakken and shale that is left untapped while they went that route. They should abandon that idea and go back to little wells in the middle of nowhere in the prairies where Gore and celebrities cant see from their private jets.

[farmaholic]

Yes right....now I will clean up coffee spew ....thanks for the chuckle....

While the ****en gas stations/refineries always get to play the "Double" Jeopardy clues and "risk" as much as they want...

Consumer contestant:

"I'll take "Business ethics" for 1600 Alex"

ANSWER:

"when a seller spikes the prices of goods, services or commodities to a level much higher than is considered reasonable or fair, and is considered exploitative, potentially to an unethical extent."

Consumer contestant buzzes in and respondes"

"What is "PRICE GOUGING".

[bucket]

What irritates me the most about federated is they were gifted that upgrader project under the vision of previous governments....

His goal wasn't to gouge the owners of Co-ops ....the people of saskatchewan....it was to create good paying jobs while using resources from saskatchewan or western canada....and allow western canadians to enjoy lower cost gas and diesel...


That was the goal of Saskferco as well ....it wasn't about selling fertilizer at NOLA pricing when it hadn't made the trip....it was about using flare gas to provide local fertilizer...


BUT you have to remember who sold off the assets for nickels as well??????

farmaholic your turn to answer...

[SASKFARMER3]

Now here is a FACT.

In Canada, all of Canada we have 195 Rigs drilling

In the Continental USA, they have 1063 Drilling right now.

Investment is the first step, to leave when a Leader is insane and out to kill an industry.

The liberals can blow smoke up one's ass but they created the problem and getting rid of them is the solution.

Nut Case got blindsided by thinking Trudeau actually liked her.

She is next to fall.

[farmaholic]

Bucket(Alex)....

What is "unfetterer and crony capitalism"!

[bucket]

Bucket(Alex)....

What is "unfetterer and crony capitalism"!

I thought the NDP sold the government share of the upgrader and saskferco.....

Wall gladly silver plattered potash to agrium. ....from protecting it as a strategic resource.....

From not allowing the sale at 39 billion to losing it at 18 billion.....

That Wall was brilliant.....as a 2 watt light bulb

[grassfarmer]

inferior product, higher impurities and metals, harder to move, more energy intensive to process, refineries to handle are far away etc etc. Lots of reasons its not top quality crude and deserving of some discount but not what we are currently seeing.

The chinese want it though but unrefined. They want their own facilities and people to upgrade it as usual thats why refining here is not an option. Thats the only market for this stuff.

But the oil companies are to blame as well when they shifted canadas oil business to mostly oil sands. There is lots of light sweet crude in the Bakken and shale that is left untapped while they went that route. They should abandon that idea and go back to little wells in the middle of nowhere in the prairies where Gore and celebrities cant see from their private jets.

At least Jazz is honest, this has nothing to do with Liberals or not even if SF3 is still mad he voted for them and wants to obscure that fact by piling hate on them. We're suffering because there has been a market downturn and our reserves are some of the most costly in the world to develop, produce and get to market. Only upside in my opinion is the fracking of shale gas is largely uneconomic now as that is an environmental disaster.