Hurricane Harvey

[Fishbone Jones]

No bs, real question .

Has she done this previously for US hurricanes?

 

[tomahawk6]

After katrina.

https://www.royal.uk/message-president-usa-following-hurricane-katrina

 

[Kat Stevens]

Fuel here in Wpg has risen 0.20/L (88.9-->107.0) in the last four days. I thought that the first 0.10/L rise was due to Harvey, but I can't help but feel that the second is nothing short of profiteering.

Amazing how a slowdown in refining can effect the price of already refined petroleum sitting in underground storage tanks for a week before the storm hit.

 

[BeyondTheNow]

An interesting article summing up the process of Harvey and the why's. 27 trillion gallons of rain...

http://www.ottawacitizen.com/harvey+finally+fizzles+look+what+made+nasty/14520149/story.html

 

[larry Strong]

Amazing how a slowdown in refining can effect the price of already refined petroleum sitting in underground storage tanks for a week before the storm hit.

 


Even worse, the Co-op Refinery Complex in Regina supplies fuel to the Western Canada Co-op's for their gas bars. Their prices jump just like everyone else.....anyone hear of massive flooding in Regina?


Cheers
larry

 

[tomahawk6]

As President Obama used to say "dont let a crisis go to waste"  [lol:

 

[SeaKingTacco]

 


Even worse, the Co-op Refinery Complex in Regina supplies fuel to the Western Canada Co-op's for their gas bars. Their prices jump just like everyone else.....anyone hear of massive flooding in Regina?


Cheers
larry

The simple answer is that there is no law saying that the only place that Co-op can sell that fuel is Western Canada. If someone from the US picks up the phone and calls them saying that they want to buy a trainload of diesel and gasoline at a price point above what Co-op can get in Canada, guess where the fuel is going?

When that happens: instant shortage and price rise in Canada, too.

Either Freakonomics or SuperFreakonomics (I forget which book) did a piece on this a few years ago. Basically, nothing solves a shortage of something like high prices. It motivates new supply into the market, quickly. And it promotes the instant conservation of the scarce resource.

 

[observor 69]

As President Obama used to say "dont let a crisis go to waste"  [lol:

https://www.goodreads.com/.../717228-you-never-want-a-serious-crisis-to-go-to-wast...
Rahm Emanuel — 'You never want a serious crisis to go to waste.'

 

[jmt18325]

Amazing how a slowdown in refining can effect the price of already refined petroleum sitting in underground storage tanks for a week before the storm hit.

It's not really all that strange, actually.  The stuff in the tank is far more important when you don't know how much new stuff is coming.

 

[tomahawk6]

Its hard to separate the two.

 

[jmt18325]

Please inform us all knowledgeable one.

The reality is, the world market, and the North American market in particular is integrated for products like this.  We also live in a world of just in time inventory management.  On top of that, you're dealing with a product that doesn't have a long shelf life.  Any disruption is going to cause a spike.  This is a big disruption, with some uncertainty built in.

 

[SeaKingTacco]

The reality is, the world market, and the North American market in particular is integrated for products like this.  We also live in a world of just in time inventory management.  On top of that, you're dealing with a product that doesn't have a long shelf life.  Any disruption is going to cause a spike.  This is a big disruption, with some uncertainty built in.

JMT is correct.

 

[George Wallace]

JMT is correct.

At the same time, there are enough Reserves and refineries around North America, that they could easily ramp up production to cover that lost 20% in Texas. 
How much of Canadian oil products actually come from across the border?

 

[kratz]

Using yesterday's average rates, the spike in Canadian markets is more than 25% higher than rates in the USA.

CPL $1.27 CAD * 3.78541 = $3.87 CAD per US Gallon * 1.24 currency conversion = $3.11 CPG USD = 25% more in Canada
CPG $2.34 USD / 3.78541 = $0.618153 USD per Litre / 1.24 currency conversion = $0.77 CPL CAD

1 L = 3.78541 US Gallon
$1 CAD = $1.24 USD

 

[Blackadder1916]

Using yesterday's average rates, the spike in Canadian markets is more than 25% higher than rates in the USA.

With only a cursory glance at your calculation (math makes my head hurt) it seems that your analysis points to a difference in average price at one point in time, not what the percentage of increase was.  I've always gone with the guesstimation that Canadian gas will always be about 30% higher priced than in the USA, so if the difference is now only 25%, then we are coming out ahead.

 

[jmt18325]

JMT is correct.

It happens...

 

[SeaKingTacco]

At the same time, there are enough Reserves and refineries around North America, that they could easily ramp up production to cover that lost 20% in Texas. 
How much of Canadian oil products actually come from across the border?

There is very little spare refining capacity in North America anymore. No new refineries have been built in years and many have been closed.

That said, apparently European and Middle Eastern refineries are ramping up to meet demand (and make some money).

 

[Scott]

Here is a bit dated info on imports vs exports.

http://www.nrcan.gc.ca/energy/oil-sands/18086

 

[larry Strong]

This one might be opening at an opportune time......The Sturgeon refinery only will produce only low-sulfur diesel fuel, and not gasoline though......

https://www.bloomberg.com/news/articles/2017-05-30/canada-to-open-first-refinery-in-decades-in-glutted-fuel-market

 

[mariomike]

As President Obama used to say "dont let a crisis go to waste" 

Former Obama Chief of Staff Rahm Emanuel said that.

I found no source of President Obama himself saying it.

Winston Churchill supposedly coined it. Machiavelli may have been the originator.

Saw this on Twitter,

"You have a choice Houston, starve to death...or eat vegan."
(ENTIRE CITY OF HOUSTON TAKES A BIG SWIG OF WHISKY)
"I'll see you in hell."
https://pics.me.me/matt-oswalt-mattoswaltva-you-have-a-choice-houston-starve-to-27486616.png