mikesims said "As a oil and gas worker prices were over 100 back in 2014 and gas was never this expensive. Only thing I see different is the carbon tax increasing the cost to refine oil . They say oil could hit 150 this year but who knows . Unfortunately there is nothing that can be done as we need the gas/diesel and our power grid cannot handle a huge influx of electric vehicles without an major overhaul. Again they do that and prices will rocket in other areas to offset the cost to upgrade. "
No shortage of people of particular political persuasion trying to pin this on gov, but oil prices and gas prices are a worldwide issue right now and I don't think care a ton about what controls Canada has in place to reign in our especially emission heavy brand of oil (in 2021 we were at about 6% of worldwide oil production). Biggest thing is that prices never would’ve spun this far out of control if OPEC wouldn’t have managed supply as tightly as they have through COVID.
I know some like to gripe about the carbon tax, but it and some of the policies to get our producers to cut back on emissions are helping Canada strike the kind of balance we need to going forward in order to still have an economy that benefits from O & G in a planet that’s becoming more and more conscious of emissions and how they have to be brought under control. Byproduct being that as our producers are able to show reductions in emissions they become more investable to many than they were when it was about getting the oil out at any cost to the environment.
I think you’ll see pump prices slowly bleed down if this drop in oil holds. As of now the uptrend I think is still technically in tact and there are still some that are holding out hope it’ll shoot another level higher from here, but look out if it loses a few more bucks. Good news for Canada is our producers would still be doing just great at $80 oil.
Interesting side note. In the last real true bear market for stocks a decade and a half ago, oil started off by running hot against the rest of the market before cooling and joining the party. History repeating?