Oil near $87/bbl.

[Azure]

U.S. crude oil for May delivery rose $1.77 to $86.64 a barrel by 11:58 a.m. EDT (1558 GMT).

http://www.reuters.com/article/idUSTRE6142V820100405

I know gas prices aren't that great right now, in fact IIRC they're at a record low, but at what point does our deficit turn into a surplus with the rising oil prices?

[Wookie]

Originally Posted by Azure

http://www.reuters.com/article/idUSTRE6142V820100405

I know gas prices aren't that great right now, in fact IIRC they're at a record low, but at what point does our deficit turn into a surplus with the rising oil prices?

I don't know how the deficit works with oil prices vs. income USD vs. CDN. The CDN dollar is almost at par. which changes things. Although it's been close for awhile. The dollar value offsets some of the oil price change. Also the majority of royalties came from Natural Gas (not sure how the royalty review has changed this).

Gas prices or Natural gas prices? Sorry - at first I thought you were talking about gas that fuels your car. Which seems to be the first concern people have with oil prices lol.

Car gas prices have certainly come off their low. I enjoyed that CHEAP gas for awhile!!

[Wookie]

Originally Posted by fotze

This post is like Ellen Degenerous doing stand-up.

I'm not sure how to feel about that?

I'm also not sure how to feel about not knowing how to feel about this?

I'm assuming I should just go hang my head in shame.

[burn_this_city]

Go baby go, with it at this level all our SAGD projects at work are going forward

[red sky]

Originally Posted by fotze

This post is like Ellen Degenerous doing stand-up.

This post is like Fotze attempting to do stand-up.

[nickerjones]

Summer's coming, the economy is looking better than it has in 3 years! ... time to screw the American and I guess the Canadian people ( well those not in the Oil industry!) ... Lets Jack up some oil and gas prices... If its not the summer, its an oil field attack, or a busted cog at the refinery. I have seen this before , I cant wait til it reaches 100 a barrel again!

Just a year and a half ago I was filling up at $1.26 a gallon or close to 32 cents a Litre. Now the price is doubled up to $2.62 a gallon.. I sure hope Obama has a great Oil care plan to curb the rising cost of gas prices ... just like his brilliant Healthcare plan! I cant wait!

[Iowa_Flames_Fan]

Originally Posted by nickerjones

Summer's coming, the economy is looking better than it has in 3 years! ... time to screw the American and I guess the Canadian people ( well those not in the Oil industry!) ... Lets Jack up some oil and gas prices... If its not the summer, its an oil field attack, or a busted cog at the refinery. I have seen this before , I cant wait til it reaches 100 a barrel again!

Just a year and a half ago I was filling up at $1.26 a gallon or close to 32 cents a Litre. Now the price is doubled up to $2.62 a gallon.. I sure hope Obama has a great Oil care plan to curb the rising cost of gas prices ... just like his brilliant Healthcare plan! I cant wait!

Higher gas prices are Obama's fault? Okee-dokee then. I guess Bill Clinton was the best president EVAR! Because when he was president I was paying 85 cents a gallon in Iowa.

In any case, 2.62 a gallon is nothing. Gas in Calgary costs just south of a dollar a litre right now--which works out to a little less than 4 dollars per gallon.

And you should see what they pay in Europe. Americans whine when their gas prices go over 2 bucks, but nobody feels sorry for them. If you don't like it, buy a smaller car.

[burn_this_city]

Americans love the free market until the market dictates a price they feel is unjustified.

[Cowboy89]

Originally Posted by Wookie

I don't know how the deficit works with oil prices vs. income USD vs. CDN. The CDN dollar is almost at par. which changes things. Although it's been close for awhile. The dollar value offsets some of the oil price change. Also the majority of royalties came from Natural Gas (not sure how the royalty review has changed this).

Gas prices or Natural gas prices? Sorry - at first I thought you were talking about gas that fuels your car. Which seems to be the first concern people have with oil prices lol.

Car gas prices have certainly come off their low. I enjoyed that CHEAP gas for awhile!!

Esentially higher oil production at higher oil prices combined with lower natural gas production at lower natural gas prices should probably make provincial revenue more oil wieghted this year.

[anyonebutedmonton]

Originally Posted by nickerjones

Summer's coming, the economy is looking better than it has in 3 years! ... time to screw the American and I guess the Canadian people ( well those not in the Oil industry!) ... Lets Jack up some oil and gas prices... If its not the summer, its an oil field attack, or a busted cog at the refinery. I have seen this before , I cant wait til it reaches 100 a barrel again!

Just a year and a half ago I was filling up at $1.26 a gallon or close to 32 cents a Litre. Now the price is doubled up to $2.62 a gallon.. I sure hope Obama has a great Oil care plan to curb the rising cost of gas prices ... just like his brilliant Healthcare plan! I cant wait!

I am at a loss for how to properly address this post...

Do they not teach economics in school anymore?

[Shazam]

Originally Posted by anyonebutedmonton

I am at a loss for how to properly address this post...

Do they not teach economics in school anymore?

There were about 20 people in my first year macro-econ course in University... There were about 10 students in my second year course... There were about 10,000 students enrolled... Just easier to take a psych course instead.

[HotHotHeat]

Originally Posted by nickerjones

Summer's coming, the economy is looking better than it has in 3 years! ... time to screw the American and I guess the Canadian people ( well those not in the Oil industry!) ... Lets Jack up some oil and gas prices... If its not the summer, its an oil field attack, or a busted cog at the refinery. I have seen this before , I cant wait til it reaches 100 a barrel again!

Just a year and a half ago I was filling up at $1.26 a gallon or close to 32 cents a Litre. Now the price is doubled up to $2.62 a gallon.. I sure hope Obama has a great Oil care plan to curb the rising cost of gas prices ... just like his brilliant Healthcare plan! I cant wait!

If I ever need a lawyer, I'm calling you first. Get on that LSAT.

[Julio]

As noted above, the rising C$ mitigates the rise in oil prices a bit...we're just a quarter cent from parity right now.

[flamesfever]

Azure, the way I read your question, it seemed to me you were talking about the price of natural gas and oil, as it relates to the Alberta deficit. If that is correct, I would suggest talking to members of the Alberta Government who may take the time to give you some of the numbers.

[HotHotHeat]

Originally Posted by Julio

As noted above, the rising C$ mitigates the rise in oil prices a bit...we're just a quarter cent from parity right now.

Interesting point. Still the most ingenious economic strategy the US has ever pulled off...decoupling their currency from gold and latching it to oil.

It'll be a long time (if ever) before the US is no longer our main oil trading partner, but with the way their dollar is going, we'd better be looking at other markets - ie. China.

[Azure]

Originally Posted by flamesfever

Azure, the way I read your question, it seemed to me you were talking about the price of natural gas and oil, as it relates to the Alberta deficit. If that is correct, I would suggest talking to members of the Alberta Government who may take the time to give you some of the numbers.

I suppose I could do that. That is what my question is too.

I just want to know what the deficit will look like next year with the continuing rise in the price of oil.

[Azure]

Originally Posted by HotHotHeat

Interesting point. Still the most ingenious economic strategy the US has ever pulled off...decoupling their currency from gold and latching it to oil.

It'll be a long time (if ever) before the US is long our main oil trading partner, but with the way their dollar is going, we'd better be looking at other markets - ie. China.

Apparently Obama is opening up off-shore oil reserves to be tapped, which means the US will become more dependent on their own oil.

We should be looking at China/India for the future. Especially if they're the emerging economies.

[Cowperson]

Originally Posted by Azure

I suppose I could do that. That is what my question is too.

I just want to know what the deficit will look like next year with the continuing rise in the price of oil.

Most global economies are likely to see a resurgence in tax revenues in the coming years as business conditions normalize.

It's not just an issue of government spending that has created deficits but also the fact many governments saw tax revenues collapse by one-third or more in the 2008-09 period.

In a place like Alberta, there is extra leverage because we get a cut of a surging commodity. In other economies, oil is simply an rising input cost and nothing else.

America, which is one of the top three oil producers in the world, the effect of the latest jump in oil is probably beneficial overall . . . . . unless it gets crazy as happened in the summer of 2008.

For Alberta, the downside is going to be persistent lower natural gas prices which weighs on drilling activity in particular. Lots of different opinions on natural gas . . . .

A lot of the movement in oil and other commodities is a result of the global economy improving and money flowing away from the safe haven of the USA dollar and back into more risky areas of the world. When you continue to see supertankers full of oil anchored off coasts with nowhere to ship, you do wonder how much oil is really worth and if a collapse might be coming.

Cowperson

[anyonebutedmonton]

Originally Posted by fotze

See Kitimat.

The problem with Northern Gateway type projects that go through Kitimat is the environmental and First Nations issues that will arise from building a pipeline through this area.

http://www.theprovince.com/business/...678/story.html

It will get done eventually I bet, but it will seriously delay the construction of a pipeline that would be essential in opening up new markets.

[anyonebutedmonton]

Originally Posted by Cowperson

When you continue to see supertankers full of oil anchored off coasts with nowhere to ship, you do wonder how much oil is really worth and if a collapse might be coming.

Cowperson

There is a reason those ships are sitting out at sea, and it has much more to do with contango plays than the idea that they have nowhere to ship.