So, I am paying on the order of $1.75 a liter for gas today.
In February I was paying around $1.50 a liter.
Collectively we use about 200,000,000 liters of gasoline and diesel daily
That equates to about 1.3 Million Barrels Per Day of Oil products.
The collective cost to the economy has risen from $300,000,000 a day to $350,000,000 a day.
We are producing and exporting about 4.6 Million Barrels per Day of Western Canadian Shale and other products.
Pricing them all at the price of WCS
In February the WCS was selling for about 50 USD per barrel.
It cost us about $1.43 to buy a Yankee buck.
Now the WCS is selling for about 100 USD per barrel.
It now costs us $1.38 to buy a Yankee buck. We are saving a nickel a buck.
In February those 4.6 Million Barrels of Exports were bringing $329 MCAD into the Canadian economy daily.
But we were spending $300 MCAD of those $329 MCADs on just fuelling our vehicles and keeping the economy running.
Advantage to the economy was $29 MCAD daily.
Annualized over 365 days that would result in a net benefit, or advantage to the economy, of $10 BCAD in the year.
Today those 4.6 Million Barrels of Exports are bringing $639 MCAD into the Canadian economy daily.
We are now spending $350 MCAD on fuelling our vehicles and keeping the economy running due to that 25 cent a liter rise from $1.50 to $1.75.
But the Advantage to the economy is now $290 MCAD daily, up from $29 MCAD.
The benefit to the economy at large, because we are operating on the international market price, has increased 10-fold.
Annualized over 365 days that would result in a net benefit, or advantage to the economy, of $105 BCAD in the year, if this market continues.
That additional $260 MCAD of revenues daily taken in by the economy is split among the oil companies, their investors, the provincial government and the federal government.
The governments are at liberty to use that money as they see fit. They can buy more tanks and F35s, or more hospitals and doctors, or pay for the cost of carbon capture, or reduce the tax burden on those paying the extra 25 cents a liter at the pumps.
If this be a mess, please let there be more messes.