May 28th, 2017

Another tale from Big Oil to explain gas prices

By Letter to the Editor on January 7, 2017.

So oil analyst Dan McTeague trots out another specious prevarication for Big Oil explaining the 25-cent-a-litre jump in gas prices since Christmas to ameliorate the anger of the ignorant masses. He feeds us the whopper that two struggling refineries over 1,000 miles away in the U.S. make our price balloon. Hey, you used that excuse last year when an Ohio refinery went down.

In Montana, just south of us, gas prices have not spiked as high as ours. We also notice that inversely, when we had supply problems due to the Fort McMurray fire, Ohio’s pump price never budged up a penny.

Prior to crude oil price plunging from $112 per barrel when our pump price was $1.12 per litre, big oil tied pump price consistently to the world price of crude. Since plunging and staying over 50 per cent lower than two years ago, Big Oil has repeatedly cited supply and demand issues as their justification for jumping pump prices to satiate their greed. All summer they told us in the off driving season prices should be lower. Surprise!

It’s a marvel indeed that they can so unscrupulously set their own price when and how they want without a peep from politicians, people or the press. They are hoping we are too stultified to object to their rapacious greed while they have preened their profits by laying off much of their workforce, keeping obsequiously quiet about their quarterly profits.

Michael Kapcsos


11 Responses to “Another tale from Big Oil to explain gas prices”

  1. Fedup Conservative says:

    Every retired oilman I talk to in the Edmonton area says the same thing there is no way gas prices at the pumps should be this high. We are being screwed by the oil industry and of course the Wildrose and Conservatives whine about the Carbon tax but ignore what deregulation has done to us, thanks to their hero Ralph Klein, or what their oil industry friends are doing to us because that’s where they get most of their donations. The NDP government’s hands are tied until this oil industry crash is over and they can start charging higher royalties and taxes from the industry, like Lougheed did, to get Albertans out of this financial mess.

    I have been to Hawaii six times over the past eight years and have always been amazed at how they can bring gas from the U.S. to Hawaii, 3000 miles by ship and sell it cheaper than what we can buy it in Alberta for. My friends who spend the winters in Hawaii say the same thing. Foreign investors treating Albertans like morons and Albertans let them do it under Klein, Stelmach and Redford . It’s why, as the Parkland Institute has pointed out that we lost $250 billion in oil royalties and why we are broke and Alaska and Norway aren’t which is something else the oilmen will tell you. Just think what us seniors could have done with the $40,000. each that every man , woman, and child has received in Alaska since 1982 from their oil wealth. They pay no state taxes and their property taxes are next to nothing as they have told those of us who have been there.

  2. biff says:

    excellent letter m.k and nice follow up by fed. we will have some bobble-heading to follow, i’m sure, that supports the oil industry as it is. these sheiks are gods to too many. slippery, greasy, slime is how i see them no matter how fresh and starched are their collars. of all the great offences to the planet, oil folk hold all else over a barrel.

  3. Fedup Conservative says:

    What really upsets me is where were these rich friends of the Conservatives and Wildrose at Christmas when our charities were so desperately in need of money to help people who needed their help. Why weren’t the Conservatives and Wildrose encouraging them to help out.
    It’s all about looking after themselves and their rich friends and who gives a damn about anyone else. Now prove I’m wrong, you can’t.

  4. phlushie says:

    The bigger scammers are those that bottle water and sell it for 1.49 a litre or more. They are obtaining the water at a negligible cost, do not have to meet the stringent quality control of municipal water and litter the environment with plastic bottles. Maybe they should be paying royalties to th government for the water they obtain.

    • biff says:

      i have my reasons to buy bottled water, but i think it is disgraceful how cheaply and simply it is given away to companies like nestle for a steal. meanwhile, i’ll take my water from the aquifer in hope over the medicated choice from lethbridge taps.

  5. EarlRichards says:

    The gasoline should be the cheapest in Canada, because the oil is located in Alberta. The transportation costs would be almost zero. To avoid the Big Oil/Texas gasoline price rip-off, plug your Tesla Model E, electric car into your household, solar array. Power to the people.

  6. Fedup Conservative says:

    @GHG What’s so hard to understand? While the Klein, Stelmach, and Redford governments were busy giving away our royalties and taxes to their rich friends, we have been forced to pay more and more out of our own pockets. It’s why we have been paying the highest power bills in Canada, up until the mess created in Ontario and why we are paying the highest property taxes and one of the highest provincial taxes. And it’s why Norway and Alaska are in such great financial shape from managing their oil wealth properly.

    • George McCrea says:

      Uh, Norway is a country and Alaska doesn’t pay into an equalization fund??? The NDP by your statement continues to sell us out due to changing nothing on royalties. My guess is that not changing them was to get the majors on line for the green garbage subsidies. ….. and go Al

  7. Fedup Conservative says:

    I wonder George how many times you have to be told that Alberta doesn’t pay one cent into Ottawa’s equalization fund. Believing the lies that Klein fed you is all you guys know. Have you ever talked to a lawyer, chartered accountant, banker or former MLA about it? I spent 32 years in the world of finance and aren’t that stupid. The Wildrose has also been using this lie from their hero Ralph Klein and everything they are promoting is aimed at taking more money out of our pockets to benefit their rich friends, yet you are right there willing to let them do it. How stupid are you?. Fortunately as you saw in the last election most Albertans aren’t dumb enough to believe their lies, so why are you????????? It’s a well known fact that the NDP can’t change the royalties until this oil crash is over. The big question is why did fools like you let Klein and Stelmach destroy Lougheed’s system, while we were desperately trying to stop them? Where were you when we were trying to stop deregulation, right there praising them I bet. Of course it was done to benefit their rich friends and collect massive donations for their party at the expense of Albertans who allowed it to happen.

    Why don’t you show some intelligence and pull up and read: ” Equalization Payment Misconceptions”. by a University of Calgary professor. I know you won’t, you don’t want to know the truth, you can’t handle it. As my late mother, a school teacher, would say ” If you haven’t got anything intelligent to say maybe you shouldn’t say anything at all”.

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