Thursday, May 2, 2019

Schadenfreude -- May 2, 2019


May 8, 2019: BC prime minster whinging about high gasoline prices.

May 5, 2019: 24-hour update.

Original Post

Schadenfreude: Vancouver, BC, hit with record gasoline prices. And BC folks love their gas-guzzling SUVs. From Bloomberg:
  • unless you've been living under the Geico Rock, you know the backstory ...
  • bragging rights: Vancouver, BC, now has the highest retail gasoline on record for a major North American metro -- according to GasBuddy -- 
  • Vancouver, BC: $4.80/gallon
    • Los Angeles, CA: $4/gallon (traditionally one of the most expensive in US markets)
  • a series of refinery shutdowns along the West Coast of North American have sent pump prices surging from San Diego to Seattle. But Vancouver was hit hardest
  • the blocked pipeline expansion: prevents 50,000 bbls of gasoline and diesel to get to the Vancouver area on a daily basis
  • Vancouver;
    • Canada's 3rd largest city
    • has just one 52,000-bbl-a-day refinery
    • must rely on limited gasoline shipments across the Rocky Mountains from Alberta as well as imports from fuel plants in Washington state
    • taxes: add to the problem; 50 Canadian cents/liter
  • double whammy: some of the highest house prices; some of the lowest wages of Canada's biggest cities
The best part of the story. Does this sound like President Obama? BC's Premier John Hogan, replying to $4.80 gasoline and the blocked TransMountain Pipeline:
“There is no magic endless supply of refined gasoline products in Alberta or Washington state or, for that matter, anywhere else in an area that would allow us to see more refined product come here,” Horgan said in parliament last week, when asked about the pipeline project.
We can't simply drill our way to lower prices. -- President Obama

By the way, even if the pipeline is approved today, and "they" start building tonight, the price of gasoline is not going to drop any time soon.

#1 industry in BC? Tourism? I don't know but I doubt a lot of Americans want to visit high crime city with high-priced gasoline.

On The Other Side Of The World

Saudi Arabia: apparently Saudi Arabia's oil production has dipped to 9.5 million bopd but the kingdom is also using record low amounts of oil for direct electricity production. Source: twitter.

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