Canada’s OIL?

Does nobody care/Does nobody see? Why does Canada earn so much less for our oil?

The media, both mainstream and alternative, and even including WikiLeaks does not seem to register the artificial discrepancy between the oil prices realized by Canadian producers under the Canada/US Free Trade Agreement, and the current global price of oil. No one seems to want to look under that particular rock and investigate the causes beyond just shrugging their shoulders and accepting that, ‘There is a pipeline bottleneck in Cushing Oklahoma.’. I find that too ridiculous for comment.A $25/barrel    (Make that $30 now) premium would build a new pipeline, never mind making sure that some pipelines were not being run backwards.  I wonder who is funding the anti-pipline group?

Media Sins of omission

 There is no reference to the unholy alliance between the government of Canada and some entities in the United States. The trade agreement between Canada and the United States, negotiated in secret by then Prime Minister Brian Mulrooney, (see ) As a consequence of that agreement we now have and have enjoyed for some time a situation whereby the exports of oil from Canada to the US (totaling in excess of three million barrels per day) are fraudulently transacted at a net loss relative to world price of approximately $25/barrel. Therefore Canadian producers and taxpayers are suffering a loss of about $50-100 millions per day. The present government of Canada is making no protest about this discrepancy so I must conclude that they are either afraid to complain or somehow being compensated for keeping their mouths closed.

In addition to the resource price discrepancy, Canadians are paying about 30% more for gasoline than Americans on an equivalent basis.

The only place in the United States where oil is priced this low is at the pipeline terminal in Cushing, Oklahoma where the price for West Texas intermediate oil is determined. It so happens that Canadian Oil is sold to the US based upon the price for West Texas Intermediate Crude. In the rest of the US prices are based on the international market which prices oil at about $105 per barrel.


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