Well we officially have to pay for people to take WCS oil

[Rene G]

Was hoping to see better prices at the pump over this. Funny that it’s at .95 cents yet the Selling price of the product is going negative.
someone in the game is still making big bucks.

Pretty sure that someone is the tax man... I really wish they had chart that showed the percentage of fuel costs that are taxes like they used to.

 

[ABMax24]

that has always been the way it works. That is why the big boys in the oil game have production and refining. When oil prices are low the refinery makes the cash when oil is up the oil production pays the bills. There is a large expense to refining and people forget and only see the price of oil but one way or the other the consumer always pays!

Oil refinery's very rarely operate at a loss, the profit on them is insane. One of the owners of the company I work for used to own a very large independent fuel retailer network in Alberta, he sold out about 15 years ago. He said refinery's are profitable at 12-14 cents per liter margins and trucking from Edmonton to Grande Prairie at just under 3 cents per liter.

So at $20/barrel oil the cost of producing and trucking the fuel to Grande Prairie is only $0.30 per liter. The rest is mostly taxes, profit for the retailer, and profit for the refiner. And as we know Alberta oil prices are well below $20 right now and have been for a while.

So someone is making a pile of coin on the $.839 diesel right now when gas is $.599.

 

[S.W.A.T.]

Have to remember that refineries don't just make gasoline or diesel. The by products get sold across the world for different things from lipstick to rubber gloves.

Price of a grease tube has yet to come down

 

[Summitric]

The investor guy on 630ched just said this morning that it isn't much to be worried about. He said the new contract doesn't come into effect and opec's new deal doesn't take affect until may1/2020. He said this happens every time the contracts come up for renewal, however, he said this is very unusual. He forecast the may 1, the price will rice $11/bbl

 

[Caper11]

Oil refinery's very rarely operate at a loss, the profit on them is insane. One of the owners of the company I work for used to own a very large independent fuel retailer network in Alberta, he sold out about 15 years ago. He said refinery's are profitable at 12-14 cents per liter margins and trucking from Edmonton to Grande Prairie at just under 3 cents per liter.

So at $20/barrel oil the cost of producing and trucking the fuel to Grande Prairie is only $0.30 per liter. The rest is mostly taxes, profit for the retailer, and profit for the refiner. And as we know Alberta oil prices are well below $20 right now and have been for a while.

So someone is making a pile of coin on the $.839 diesel right now when gas is $.599.

Thank to the higher carbon tax on diesel, and the demand for it.

 

[Beels]

Thank to the higher carbon tax on diesel.

Which makes no frikken sense as almost everything built in the last 10 years is tier 4 emissions...

Man, are we ever backwards.

 

[ABMax24]

Thank to the higher carbon tax on diesel, and the demand for it.

Demand maybe, price gouging more likely.

The carbon tax difference between gasoline and diesel is less than 3 cents. Not the 33 seen at the pumps.

 

[ABMax24]

Which makes no frikken sense as almost everything built in the last 10 years is tier 4 emissions...

Man, are we ever backwards.

Emissions equipment reduces PM (particulate/soot) and NOx emissions not CO2 emissions that are being taxed. The irony is this emissions equipment actually increases CO2 emissions.

 

[pfi572]

Price gouging is all it is plain and simple .

 

[Caper11]

Yep, its gouging. Look at the price of gas in edson. 71.9 compared to the city. Right it costs so much for trucking.

 

[pfi572]

CBC News has not been able to independently verify that barrels of Western Canada Select in fact traded hands at negative prices. According to data compiled by financial news service Bloomberg, WCS was trading at about $8 US a barrel on Monday morning, down by about $3 US from Friday's level.

 

[Caper11]

Look at WTI now.

 

[jhurkot]

 

[06yamahaapex]

-24$ for wti right now. This is hard to comprehend.

 

[Caper11]

Holy crap

 

[FatGuy]

fawking insane

 

[Beels]

It's officially bizarro world...

 

[S.W.A.T.]

So are they paying us to take it away?

 

[pipes]

So are they paying us to take it away?

no we are paying them to take it away

 

[Dawizman]

Anyone in the know on this? If a guy had a bunch of trucks available, where would he go to get paid to fill them up?