Fuel Efficiency doesn’t have to be difficult
Is the drop in crude prices being reflected at the pumps?

In the News

Refinery outages cause W. Canada diesel shortage

Reuters does a good job summarizing the situation in Western Canada with respect to diesel supplies.  "Planned and unplanned refinery outages have combined to create a shortage of diesel fuel in Western Canada, leaving some truck stops with no supplies, industry officials said."    They also updated the situation at one of the major refiners experiencing difficulties late yesterday.  Gives a good overview of the current situation.

Learning Under Fire

Fire and fuel are a bad mix...Unless it's a controlled training exercise.   The Oakville Beaver dropped by during a training exercise we were conducting with local firefighters.  An interesting story.  Even cooler pictures. “This is the confidence builder,” said Oakville Fire Chief Richard Boyes, as he watched his recruits extinguish yet another gargantuan fire. “If they know they can handle this the real life events are not a big deal.”

Comments

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Peter

Isn't it hard to lie for a living? I find it so interesting that when oil prices were at $147 per barrel, there was no shortage, no refinery repair, no possible reason for not producing. Now that you are not making as much on the oil end, you artificially create a shortage to maintain higher prices. also very interesting is you saying that it takes 30-60 days for crude to be refined and yet when oil prices rise, the affect on the market is immediate but if they fall, it takes a long time to correct. Why don't you just come out and say that you're screwing us for the simple reason that you can.

Jon Hamilton

Peter,

The situation in Western Canada, as outlined in the articles I linked to, is an industry issue. Our refinery in Edmonton is down to hook up a $2 Billion investment in the facility. That type of work requires that you plan far in advance - which we did. You don't shut a complex operation like a refinery down on a whim because the price has dropped.

Unfortunately, some other refiners have struggled causing supply to tighten. We're doing our best, but the gap is too big for us to close on our own.

As for the 60-90 day comment, that is simply not true. I've talked at length on this blog about how commodity price changes impact the price at the pump and have never talked about a lag. Besides, if what you say was true, you'd just be seeing the gas price increases from the high crude oil prices in July/August. Instead, they continue to drop. Read here for more:

http://www.pumptalk.ca/2008/07/post.html

Jon

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