If Canada were self-sufficient in oil why do our prices rise when Hormuz shuts down? carney has no answer. PoiLIEvre does not even ask the question
- Thread starter DisobeyTyranny
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RightOfSask
Ga$$light R Us, Joyful Patriot Jabber
Because we're self sufficient when it comes to oil, but not when it comes to refined oil products like gas. Same goes for the US. While they have enough capacities at refineries, they rather refine heavy crude (which has to be imported) rather than light shale oil. Most of the oil produced in the US is shipped to refineries outside of the US, while they import heavy crude from Canada and the Arab countries.
Hirudinea
12" Member
That is frankly a stupid thing to do.
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RightOfSask
Ga$$light R Us, Joyful Patriot Jabber
It's the most economical thing to do. Almost all refineries in the US are optimized for heavy crude oil (which is heavy in sulfur). They could refine their light shelf crude also at home, but they would make that way less money.
Hirudinea
12" Member
@RightOfSask
How did they set this up anyway? How is it more profitable to export domestic oil and refine imported oil? I'm sure there must be a reason but I don't get it.
How did they set this up anyway? How is it more profitable to export domestic oil and refine imported oil? I'm sure there must be a reason but I don't get it.
RightOfSask
Ga$$light R Us, Joyful Patriot Jabber
@Hirudinea
Because the shelf oil boom started under Obama. Before that the US was quite reliant on oil from the Arab countries. They invested to much money to optimize their refineries to process heavy crude from the Arab countries in the most efficient way. Processing heavy crude requires extra steps. Heavy crude is therefore cheaper to buy for the Americans. And they are able to sell their light shelf oil for a premium, because it's also easier to refine.
Because the shelf oil boom started under Obama. Before that the US was quite reliant on oil from the Arab countries. They invested to much money to optimize their refineries to process heavy crude from the Arab countries in the most efficient way. Processing heavy crude requires extra steps. Heavy crude is therefore cheaper to buy for the Americans. And they are able to sell their light shelf oil for a premium, because it's also easier to refine.
CaptainTrouble
Well-Known Member
Have you studied your USSR history? Heard of the Kulaks?
Anyway, once a private party that has a lease with the crown to extract oil from the ground and they extract oil from the ground, the oil belongs to them not the Canadian people. Therefore, they will want to sell it at the highest price they can sell it at which may or may not be to the Canadian people if Canadians aren't willing to pay enough and foreigners are willing to pay more.
Should the government step in and force companies to sell to Canadians first over foreigners? Perhaps BUT it should be at market prices not discounted prices. The reason is because when you discount price to "help Canadians" you will cause less investment in O&G and less growth which lowers supply. Remember your USSR history?
Anyway, once a private party that has a lease with the crown to extract oil from the ground and they extract oil from the ground, the oil belongs to them not the Canadian people. Therefore, they will want to sell it at the highest price they can sell it at which may or may not be to the Canadian people if Canadians aren't willing to pay enough and foreigners are willing to pay more.
Should the government step in and force companies to sell to Canadians first over foreigners? Perhaps BUT it should be at market prices not discounted prices. The reason is because when you discount price to "help Canadians" you will cause less investment in O&G and less growth which lowers supply. Remember your USSR history?