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Just Who Is Getting the Hose? One Man's Opinion

By Ben Meisner

Friday, April 27, 2007 03:46 AM

        
It should come as no surprise that Irving Oil has set a new record for profit in the USA, $39.5 billion dollars in one year. That formerly was held by EXXON, (Esso in Canada) who had a net income of $36.13 billion in 2005.
The reason I mention these figures is to show just how much we are being gouged by the gas producers.
In the past three weeks, the price of a litre of gas has risen by 10 cents.
Simple math will show that 19.5 gallons of gas can be refined from a barrel of oil. That works out to 79 liters in Canadian terms or an increase of $ 7.90 cents a barrel.
The price of crude is 10% lower this year than last, but the price at the pumps has steadily risen.
Now lets break down a barrel of crude oil (US barrel used as universal measurement)
19.7 gasoline
10 gallons of heating oil
4 gallons Jet Fuel
7.3 gallons of plastics, synthetics, Tires, etc.
1.8 gallons of heavy Oil
1.8 gallons of liquefied petroleum
At 78.2 cents a liter in PG that means that taxes are 36 cents a litre or every time you fill your car with say 50 litres you pay $18.00 in government taxes.
That may explain the reason why governments are happy with the constant increase in the price of gasoline.
If you have wondered why they don’t come to our defense, there is an obvious reason.
So on one hand we have the oil companies sticking it to us.  On the other, the governments (both provincial and federal) are sticking it to us, I believe under the guise that the money they get from the gas tax will be returned to fix and build new roads in the area.
 Add to that the City of Prince George which wants to get in on the gravy train and introduce its own tax, to “fix the roads “
We are also being told that we must drive more efficient vehicles, now who might I ask will give us the money ?
As you read this column if you get the feeling that the price of gas has a lot more to do with you getting the gas, you have hit the bell at the pump!
I’m Meisner and that’s one man’s opinion.

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Comments

Maybe we should make the Oil Companys Pay...Some should blow up the Pipelines, It will give the Big Company something to spend their money on (Repairs..Security)..AND GIVE THEM SOMETHING TO THINK ABOUT.....GREEDY ASSES.. (OK Sorry..This is just a Evil Thought)
Concentrating only on the difference in price between the refinery and the pump misses most of the gouging, becaus4e it presumes that the refined price is reasonable in the first place.

The oil is pumped out of the ground by conglomerates (like EXXON, BA etc) who set the price in a cartel and use every excuse imaginable to increase it again, and again , and again.... The wellhead price increases, however, are just more profits for the companies.

We are gouged at the beginning and gouged at the end. The alpha and omega of profit making!
Ever notice when it goes up,it never quite goes back the what it was before the increase.Always stays up a couple of cents.That's how they do it as far as price increases are concerned.
Slimeballs all of them, and the government is in it up to their black little hearts.
The government has a mandate to protect the consumer but they like the extra revenue of the increases so they won't help at all!
Gasoline prices in US dollars per
US gallon (slightly less than 4 litres):


Netherlands $6.48
Norway Oslo $6.27
Italy Milan $5.96
Denmark $5.93
Belgium $5.91
Sweden $5.80
United Kingdom $5.79
Germany $5.57
France Paris $5.54
Portugal $5.35
Hungary $4.94
Luxembourg $4.82
Croatia $4.81
Ireland $4.78
Switzerland $4.74
Spain $4.55
Japan $4.24
Czech Republic $4.19
Romania $4.09
Andorra $4.08
Estonia $3.62
Bulgaria $3.52
Brazil $3.12
Cuba $3.03
Taiwan $2.84
Lebanon $2.63
South Africa $2.62
Nicaragua $2.61
Panama $2.19
Russia $2.10
Puerto Rico $1.74
Saudi Arabia $0.91
Kuwait $0.78
Egypt $0.65
Nigeria $0.38
Venezuela $0.12

Thank you for that Diplomat.

Proof positive that the price of gasoline at the pump has little to do with wellhead price. Wellhead price also has nothing to do with "wellhead" cost.

The cost of getting a barrel of oil from Saudi Arabia is considerably less than the cost from the oil sands. The common rise in price of the commodity has enabled the oil sands to be developed as a viable alternate to the oil from Saudi Arabia and similar easily accessible sources.

So, are oil companies who extract the stuff gouging us. Sure, if they have cheap resources available to them. Are those involved with the tar sands gouging us? Possibly, but certainly not to the same extent.

If anyone is getting "hosed" look to Europe where higher prices have caused them to be more efficient in the transportation systems they use. It helps those on the low end of the pump prices to keep on truckin' as if the stuff will last forever.

We're somewhere in the middle ..... Just like Canucks, eh? And, of course, the biggest guzzler, quantity wise is the USA and they are in the bottom third.
The oil and gas resources should be nationalized and the fat cats need to be punted out.

Nationalize the whole oil and gas shebang - the crown should own the resources anyway.

The value of the capital being used for extraction is likely worth a lot less than the costs to clean up the mess created by the mad rush for more oil - which the government will likely be on the hook for anyway.

If the government was responsible for extraction and netted the initial profits from extraction and distribution to refineries, ase well as setting prices, we wouldn't have this issue.

Set the extremely high prices for export south and let the government profit.

Unless you like the idea of the fat cats cleaning out the coffers.
Bunch of whiners. Why not start yer own oil company? It's easy. Ain't it?
The extraction of oil from the Alberta tar sands via the natural-gas-fired pressure cooker method must be one of the most polluting and inefficient methods in the world!

As long as that is allowed to go on Canada does not have the slightest chance of meeting the requirements and targets set out in the Kyoto protocol or even the watered down version of the Tory government without imposing tremendous costs on the citizens of this country.

The Liberals didn't stand up to Alberta and neither do the Tories now - all the mudslinging about *wasted years* is political hype and opportunism.

How can it ever be justified that the burning of one non-renewable resource (natural gas) to extract another non-renewable resource (crude oil) is a sound idea when it in fact is utterly deplorable?

Deplorable, as it goes against all the scientific recommendations to reduce the emission of greenhouse gases a.s.a.p. if not sooner!

Why not just liquefy the natural gas and sell it (export it) - still making vast amounts of money?


Alex, I would like Venezuela for 12 cents please....
There is no reason for gas prices to keep going up. The rich get richer and the poor get poorer
It sucks about the gas ... If you do not like it then sell your car and stop winning . it sucks deal with it.
It sucks about the gas ... If you do not like it then sell your car and stop winning . it sucks deal with it.
ford & Chevy keep making there monster sized trucks!..Think one day they will get it when nobody is buying there vehicles! why do you think that Toyota as moved to #1 spot.
Two points:
#1) Exxon and Irvin Oil are making $40 billion dollars profit a year that they announce, the revenue they couldn't hide in write offs and write downs.

#2) Why does my 5.4 triton get 3.5km per litre with Esso and Cheveron gas, 5km per litre with Shell and Petro-can gas, and 6-8km per litre with Canadian Tire gas? It boogles my mind how it can vary so much based on where I fuel up. Obviously driving has a role, ie 800km on highway per tank, 500km average in town. Latest tank has nearly 600km and it was 4/5ths in mud and snow breaking trail with 4x4 engaged spinning at low speeds (Canadian Tire gas)?
People are still driving vehicles (for pleasure - not for business purposes) which get only 3.5 km per litre???

No wonder the CEO's of Exxon and Irving Oil are smiling.
I was under the impression the gasoline sold locally all came from the Husky refinery.
Owl I don't remember the break down but there is still gas brought in from out of town, especially for the higher octane and certain brands. It was a big deal when it seemed like the Shell Gas was causing fuel pump failures and there was an article on opinion 250 of where it all comes from.