Oil Prices

Hello there guys: It seems that your reporters, both print and electronic, keep on complaining about high gas prices. This side of the border things are a lot worse. Here we buy gas by the litre (1 US gal = 3.79 l) and the stuff sells for $1.30 to $1.50 /l In other words $5.12 to $5.70 per US gal. From what we are being told, just one oilfield (Fort MacMurray, Alt) has more oil than all the Arab states put together. The 'oil shortage' is an excuse for the big oil companies, the federal government and the provincial governments to stuff their pockets. But what can U do there is an oligopoly. We grin and bear it, George

Just wondering how much of that $5.70 is taxes on the gas.  George just wondering (since Canada has national healthcare) did the goverment pay for your DS?  How hard is it to get WLS there?  Are there alot of hoops to jump through?  Brian

Hi Brian: I didn't say that our governments are saints. They take their pound of flesh on gas. Just like the other sin products and  services, Alcohol, tobaco, gambling etc. Out of that $5.70 at LEAST $1.50 goes to "road taxes". The only thing is that in our province there has not been a majour road constructioon in at least 35-40 years. Our city streets are a disgrace. As for the healthcare, no matter what we are taxed on, they say that it goes to healthcare. And all this is on the top of the premiums we pay (a percentage of our gross income). Once we were proud by our healthcare system but for the last 30 yr. it is detiriorating fast. All this because of bad management.  The plan, after a year of begging and pleading paid for the Dr. and the hospital but I had to go to Michigan (at my own expense) to get it done. They don't pay for eye exams, psa tests(prostate cancer), nothing for medication after u leave the hospital etc. They will, however, pay for sex chages. Of course I am talking about Ontario. Most of the other provinces are a lot worse than us. As for WLS,  lapbanding is not paid by any province and most drs. charge about $15,000.00 to $20,000.00 for the procedure. RNY and DS you can get it done in Canada but the waiting period is 2-5 yr. depending on your surgeon. This is totally covered by the plan. PS.                 the federal government gives the provinces, according to their population and their richness, so much money and they administer the healthcare. To get wls, in Ontario you have to go to your own physician (if you have one) and the physician has to argue on your behalf for you to get it. You must have a BMI of over 50 and have morbid conditions. George.

Well George, remember you asked.... Here in the states I'm paying a avg. of $5.00 a gal. for diesel, which equates to $1.00 per mile. This doesn't include the fuel tax's (aka road tax's)  which is based on the amount of miles driven in each state during each quarter. Also doesn't include the annual heavy use tax of $550.00. Now that our EPA requires refineries to produce ultra low sulfur diesel the mpg has dropped and the process strips the lubrication, so now we have to add a additive at each fill up for apx. $12.00. Now that wouldn't be so bad if it went to repairing our bridges and roadways. But the majority is diverted to mass transit, education, Welcome Centers (which some were not allowed to use) and city beautification projects. Also some of our tax built interstates are being privatized and turned into toll roads. Then leased to the highest bidder. Good example I-80 in IN. leased to Australia who just took it over and doubled the toll. So yes I feel your pain brother, but remember you asked!! C'ya Bob

Yeah, that's not THAT much more than we're paying here.  The difference is the taxes for socialized medicine and such. It's a hard nut with no real solution, other than to come up with alternative fuel sources.  Hydrogen fuel cells, lithium-ion batteries, something that will give us the range and power of an internal combustion engine. I'm just SICK and TIRED of everyone pointing fingers at each other saying, "High prices are because of THEM!", while our politicians (That spelling doesn't look right to me, but I think it is) are saying, "Let's cut the taxes for the summer".   Cutting our taxes may help short term - but you watch.  They cut federal gas taxes for the summer, oil companies will raise the prices to match the cut, and then the taxes will come back and we'll have gas that's fifty - sixty cents higher a gallon. Then people are going to cry more. Yay. I think that we need to invest in alternative fuels.  Not bullcrap ones like ethenol - but real ones, like I mentioned, hydrogen fuel cells, lithium-ion batteries, solar power - something.  

 One solution for many of us may be, and I would like to bounce this concept off you big entrepreneurial (as well as economist)l types, those that esp. work in the petroleum field, is what I would call "consumer fuel cooperatives" ("CFC"s), similar in principal to a farm co-op, which is a pooling of farmers' joint financial resources for the benefit of all members of the group, who have similar needs.  My idea is this:   basically the cooperative would sell fuel "vouchers" to its members which would allow members to purchase gas in advance now at a fixed price, to be used in the future to actually fuel up as needed.  Say, for example, regular gas is going for $4.00 a gallon (round figure to make it easier to work with).  A co-op member could then purchase, say 100 gallons of fuel now at $4.10 per gallon (the extra 10 cents is "juice", used to fund the overhead and expenses of the cooperative).  The consumer receives a voucher (probably on a debit-type card) for 100 gallons of regular gas for their $410.00.  The co-op owns large fuel storage tanks and, purchasing 100 gallons of fuel at that time from the big gasoline supplier cos. (e.g. from whoever Texaco, Shell, Mobil, etc. get their fuel from)  accepts delivery and moves that quanitty of fuel into its storage tank(s).  When the consumer needs gas for their vehicle, they drive to a co-op filling station and use their voucher to buy their gas out of their allotment.  Initially these fueling stations would be located say 100 miles apart and then ideally closer together as more of them are built ...  They may also sell gas at whatever the current going rate is to non-members, for additional income to the co-op.   The benefit for the consumer  that I see with the co-op, obviously, is that, no matter how high the cost of fuel goes in the future, they can still use their voucher to buy it at their original pruchase price.  The coop is not ever going to be out or lose any money b/c it already purchased the fuel at that rate when it was the going rate (plus the "juice").  If and when the price of fuel goes down, the consumer can go ahead and buy fuel at the co-op at the lower rate the same as a non-member, and keep from tapping into their voucher allotment in case they need to use it if the cost goes back up above the purchased rate again (but there would have to be a time limit to using the voucher, like say within a year, or it expires).      I don't see any way anyone could lose on this type of arrangement, and the consumer would always come out on top of the game, as far as how much they have to pay for gas.  The only pitfall I can foresee as a laymen is, what if the gas supply cos. refuse to sell to the co-ops, seeing how it might put the popular gas station chains out of biz or threaten their income severely?     So, will this new business concept make me the next Bill Gates or Sam Walton, or (still) just a broke attorney in Texas?            I've bounced it off some farmer buds of mine, and they can't believe no one has thought of this idea until now ..