Money: No simple answers for high B.C. gas prices or impact of pipeline, NEB says - PressFrom - Canada
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MoneyNo simple answers for high B.C. gas prices or impact of pipeline, NEB says

10:31  16 may  2019
10:31  16 may  2019 Source:   cbc.ca

The Trans Mountain pipeline expansion may not ease B.C. gas prices — here's why

The Trans Mountain pipeline expansion may not ease B.C. gas prices — here's why Premier Jason Kenney is offering to help his B.C. counterpart with the high price of gasoline in that province's Lower Mainland. But an industry expert said a new pipeline doesn't guarantee price cuts.

Fluctuating oil prices or possible future development of pipelines don’t necessarily impact this, Watson said . The report offers a number of The Canadian Association of Petroleum Producers forecast daily production at 3.9 million barrels last year. If no new pipelines are built during that time

Exhibit B: higher prices for Albertan crude = higher gas prices . The real main purpose of the TMEP is to Washington state refineries, like this one in Anacortes, have a major impact on retail gasoline prices in B . C . Greater pipeline capacity will not necessarily end the practice of apportionment

No simple answers for high B.C. gas prices or impact of pipeline, NEB says© Ben Nelms/CBC Bulk fuel truck lines up at the Burnaby Parkland Refinery in Burnaby, B.C.

There's no easy explanation for why B.C.'s gas prices are so much higher than the rest of Canada, or what will happen to them if the Trans Mountain pipeline expansion goes ahead, according to the National Energy Board's chief economist.

The NEB released a snapshot of the issue Wednesday, breaking down the elements that have driven up the price at the pumps in B.C.

"It's a combination of numerous factors," chief economist Jean-Denis Charlebois told CBC. "One factor is that we're approaching the summer driving season. This means demand is increasing."

Public will have a say in regulator inquiry into B.C.’s record-high gas prices

Public will have a say in regulator inquiry into B.C.’s record-high gas prices The probe into the province's volatile fuel prices will also include a four-day hearing in July that will explore the issue with oil companies.

Critics of the pipeline are fond of saying it would carry “the dirtiest oil on the planet,” and there is no question that the oil is significantly “dirtier” than most in the sense that it results in more greenhouse gas emissions. “ B . C . residents favour Northern Gateway pipeline : Poll.”

The NEB says it cannot give priority to any type of shipment – heavy crude oil, light crude oil or refined petroleum products. But the allocation of space in the pipeline Bruce Ralston, B . C .'s lead minister on gas prices , said his government has asked Ottawa to intervene and remains hopeful that will happen.

Another is the fact that B.C. depends on the Cherry Point Refinery in Washington State for much of its gas, and the exchange rate has recently been less than favourable.

According to the NEB's summary, the four major components that make up the price of gasoline include:

  • The cost of crude oil: averages 51 cents per litre in Vancouver, or 10 per cent below the Canadian average.
  • Refining costs: averages 52.1 cents per litre in Vancouver, or about double the national average. This includes all the expenses involved in bringing crude from a wellhead to a refinery, and then completing the refining process.
  • Marketing margin: averages 10.5 cents per litre, about 69 per cent higher than the rest of Canada. This includes all costs for getting the refined product to the consumer, including transportation, marketing and profit.
  • Taxes: averages 53.9 cents per litre in Vancouver, or 21 per cent more than the national average.

Charlebois said the NEB has not broken down the various pieces that make up each of these four components to see how they compare in B.C. That means, for example, that he has not analyzed how the average profit margins for gas stations differ across the country.

John Horgan reacts to Jason Kenney's comments as B.C. signals intent to fight 'turn-off-the-taps' law

John Horgan reacts to Jason Kenney's comments as B.C. signals intent to fight 'turn-off-the-taps' law Alberta's Premier Jason Kenney is blaming B.C's obstruction of his province's oil and gas industry — specifically to the Trans Mountain expansion — for $1.70-per-litre gas prices in the lower mainland.

A simple pipeline is a long length of connected pipes with pumps, valves and control devices to help convey liquids or gases . The system for pipeline approval itself has also been criticized, with some claiming Canadians have lost faith in the NEB ’s ability to judge energy projects impartially.

Here are a few answers to questions about high gas prices , and whether the Trans Mountain pipeline expansion could do anything to cool prices at the Perl said the proponents of the Trans Mountain pipeline expansion will want all their money back soon, and that they’re already spending lots of cash

As for one of the most contested questions in Western Canada, Charlebois said gas prices could go either way if the Trans Mountain pipeline expansion project is completed as planned.

"If the extension is approved and built … this will increase capacity and directionally will allow more gasoline to flow from Alberta to B.C., thereby increasing supply and putting downward pressure on prices," he said.

But at the same time, "it will provide Canadian producers greater access to international markets, thereby putting upward pressure on prices of crude oil. How those two forces will net out remains to be seen."

Vancouver expected to headline long Canadian summer of high gasoline prices.
CALGARY — Gasoline prices are expected to remain just below record highs all across Canada this summer except in Vancouver — where a perfect storm of factors will likely ensure motorists continue to set new all-time records at the pumps. Fuel market analysts say average retail prices in Canada are within a penny or two of their year-ago levels, which were some of the highest on record for many markets. "Vancouver certainly is (at historic highs) but the other major markets we're looking at, such as Calgary, Toronto, Halifax, Montreal, they're not exceeding historical levels, they're basically at historic levels," said Michael Ervin, senior vice-president at the Kent Group

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