Canadian Oil DOA

[GDR]

You're spot on this time BigWheel but I'm guessing the answer from this forum would be "never mind it's selling at a loss - we'll make it up on volume"

Big wheel and grassfarmer if you produce more bushels per acre or wean a higher percentage calf crop do you make more money?

Your idea of over supplying the market has some merit but Canada is only a small portion of world oil but the oil & related spin offs are a larger portion of the economy. Supposing oil prices dropped 5% from the extra supply the pipe would provide but we double the volume and double the price by eliminating the differential doesn't that make sense?

And yes o88 keep that stuff off rail!

[the big wheel]

Big wheel and grassfarmer if you produce more bushels per acre or wean a higher percentage calf crop do you make more money?

Your idea of over supplying the market has some merit but Canada is only a small portion of world oil but the oil & related spin offs are a larger portion of the economy. Supposing oil prices dropped 5% from the extra supply the pipe would provide but we double the volume and double the price by eliminating the differential doesn't that make sense?

And yes o88 keep that stuff off rail!

The point is not will oil make money but what will happen to other industries if we expand oil given the same rules we have now?

We already know the oil industry can afford doubling or more rhe royalties paid to all of us as evidence by the fact oil went from 120 to what ever low and they still make money. But when oil went to 120 in saskatxhewan it broke us part was spending like fools the other was the increase costs of rhe expansion were not covered by the royalties. Farmers are the ones taxed the most to still pay for rhat boom and now that it is a bust in prices we still paid way too much for fuel and on top are paying the pst on everything. The argument that the carbon tax will break us is a good one but that same logic applies to the pst.
So the question is when and let's suppose the price of crude magically goes up by oversupplying it. Are the royalties going to
Pay for that increased cost in services to that industry? When an industry increases it always takes more services paid by all of us under the current system.
Nobody is talking about any of this. Only the drunken fools math of the sask party 120 barrel oil and where did that get us? When I say us I mean agriculture?
Those increased fuels costs hit farmers the hardest we have no way to increase our price to account for it. Those increases all increased wages for repairs parts etc for farmers. Abandoned oil wells etc etc

also we are not small players on the oil market and with so much abundant oil everywhere that all of us were lied to for years about the big shortage being the reason prices are so high even a small
Signal of more production will lower prices in the world scene for our product. Except domestically look what happens it's like we get hosed for the lack of bigger profits by oil.

So go ahead make less per barrel and sell more I m all for it as long as we farmers are not the ones paying for the sell for less or more part like we have been.

[jimmy]

You're spot on this time BigWheel but I'm guessing the answer from this forum would be "never mind it's selling at a loss - we'll make it up on volume"

Now your talking like a true farmer grow more for less. Very profitable

[bucket]

Now your talking like a true farmer grow more for less. Very profitable

I laugh when ever I hear making it up on volume.....

Farmers have indexed BPA instead of price per bushel.....


We are getting the same price for a bushel as what year?


6 bucks in 1975 would be indexed to 28 today.....machinery has been indexed accordingly. ....not grain prices.....

Is anyone representing farmers understanding this???????

[GDR]

The point is not will oil make money but what will happen to other industries if we expand oil given the same rules we have now?

We already know the oil industry can afford doubling or more rhe royalties paid to all of us as evidence by the fact oil went from 120 to what ever low and they still make money. But when oil went to 120 in saskatxhewan it broke us part was spending like fools the other was the increase costs of rhe expansion were not covered by the royalties. Farmers are the ones taxed the most to still pay for rhat boom and now that it is a bust in prices we still paid way too much for fuel and on top are paying the pst on everything. The argument that the carbon tax will break us is a good one but that same logic applies to the pst.
So the question is when and let's suppose the price of crude magically goes up by oversupplying it. Are the royalties going to
Pay for that increased cost in services to that industry? When an industry increases it always takes more services paid by all of us under the current system.
Nobody is talking about any of this. Only the drunken fools math of the sask party 120 barrel oil and where did that get us? When I say us I mean agriculture?
Those increased fuels costs hit farmers the hardest we have no way to increase our price to account for it. Those increases all increased wages for repairs parts etc for farmers. Abandoned oil wells etc etc

also we are not small players on the oil market and with so much abundant oil everywhere that all of us were lied to for years about the big shortage being the reason prices are so high even a small
Signal of more production will lower prices in the world scene for our product. Except domestically look what happens it's like we get hosed for the lack of bigger profits by oil.

So go ahead make less per barrel and sell more I m all for it as long as we farmers are not the ones paying for the sell for less or more part like we have been.

Royalties are a sliding scale based on the price of oil, thats why lower oil prices are hurting government revenue. Its already set up so that oil companies pay more as the price rises. As for how governments spend royalty revenues that's another issue but you cant hold that against the industry.

[the big wheel]

Royalties are a sliding scale based on the price of oil, thats why lower oil prices are hurting government revenue. Its already set up so that oil companies pay more as the price rises. As for how governments spend royalty revenues that's another issue but you cant hold that against the industry.

The scale is no where near the rate it needs to be. That's the problem. We complain about things going east rightfully so but we also should be worried as much or more what's going out of the country.