Prowling the Pumps – November 25, 2008

Canadian Gasoline Prices

Average across Canada

Gasoline prices are still dropping, but the rate at which they’re dropping is slowing down – 2.6¢ per litre this week compared to 3.5¢ per litre last week. The price of gasoline across Canada averaged $0.819 per litre. Our hypothetical 80-litre tank was only $2.08 less expensive to fill this week than last.

Provincial gasoline prices slid in everywhere in the country, but some cities – Kingston and Montreal – saw increases as much as 3.4¢ per litre. This week, for the second week in a row, the largest drop honours go to the Yukon at 7.5¢ per litre.

Overall, the average gasoline price in Canada has dropped 56.4¢ per litre since its all-time high of $1.383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank now costs $45.12 less than it did almost four months ago – $110.64 then compared to $65.52 now.

Least Expensive Gasoline in Canada (per litre)

Of the 60 cities surveyed this week, 58 enjoyed gasoline prices less that one dollar. That’s two more than last week. The number of cities paying less than 80¢ per litre grew to 10 from two. And for the first time in several weeks, Edmonton sneaks into the low-cost five, all of which were below 80¢ per litre for the first time.

Most Expensive Gasoline in Canada (per litre)

Another first this week – first time three cities in the pricey five are below $1.00 per litre. Maybe next week, all five will be under the $1.00 mark.

Last week we questioned how long our flirtation with affordable gasoline will last. We pointed out that the decline seemed to be leveling off, and that trend continued this week.

In the past week, the price of West Texas Intermediate slipped below $50 US per barrel before climbing back to the $54 US mark. That’s the lowest it’s been since the spring of 2005.

The stock markets have fared better lately with almost a week of solid gains. Will the oil markets follow suit?

We’ll see what happens next week.

Pricing by Province

	Last Week	This Week	Change
BC	0.965	0.905	-0.060
AB	0.832	0.800	-0.032
SK	0.912	0.869	-0.043
MB	0.890	0.872	-0.018
ON	0.844	0.813	-0.031
QC	0.864	0.850	-0.014
NB	0.859	0.827	-0.032
PE	0.856	0.809	-0.047
NS	0.872	0.826	-0.046
NL	0.988	0.955	-0.033
YT	1.054	0.979	-0.075
NT	1.104	1.062	-0.042

Prowling the Pumps – October 21, 2008

Canadian Gasoline Prices

Average across Canada

Still dropping – 2.5¢ per litre this week to $1.044 per litre. Our hypothetical 80-litre tank was $2.00 less expensive to fill this week than last.

Gasoline prices slid everywhere except in the Yukon, where they stayed the same as last week. The steepest drop, 8.5¢ per litre occurred in Newfoundland and Labrador.

Overall, the average gasoline price in Canada has dropped 33.9¢ per litre since its all-time high of $1.383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank now costs $27.12 per litre less than it did only three months ago. The reasons remain the same – declining demand for gasoline and cheap oil.

Least Expensive Gasoline in Canada (per litre)

Last week was first since we began prowling the pumps that there is one city in the low-cost five where the average price of gasoline was less than a buck. And the prowler predicted there was “hope for the rest of us yet”. I don’t like to boast, but this week, all five cities averaged less than a buck, including two from Alberta. And all indications are that this trend will grow. Interesting to note both Kingston and Ottawa saw slight increases in price, as did many cities in Ontario.

Most Expensive Gasoline in Canada (per litre)

The least expensive city in the pricey five finally dropped below $1.20 per litre, and the next three were all well below $1.30 per litre. And believe it or not, prices are dropping faster than they rose.

Last week we noted that the price of WTI had dipped below $80.00 US per barrel for the first time since last year. Well, since last week, WTI dipped below $70.00 US per barrel, and that hasn’t happed since June 2007. Not even the potential for OPEC to reduce production had much of an effect. So the big questions now are How low will it go? and How fast will it turn around?

We’ll see what happens next week.

Pricing by Province

	Last Week	This Week	Change
BC	1.169	1.162	-0.007
AB	1.073	1.007	-0.066
SK	1.153	1.102	-0.051
MB	1.137	1.111	-0.026
ON	1.062	1.045	-0.017
QC	1.120	1.088	-0.032
NB	1.110	1.067	-0.043
PE	1.166	1.049	-0.117
NS	1.111	1.088	-0.023
NL	1.277	1.192	-0.085
YT	1.249	1.249	0.000
NT	1.369	1.329	-0.040

Prowling the Pumps – October 8, 2008

Prowling the Pumps – October 8, 2008

Canadian Gasoline Prices

Average across Canada

Sometimes gradually, sometimes steeply, the decline continues. The average price of gasoline in Canada dropped for the fourth week in a row, this time by 5.2¢ per litre to $1.128 per litre. Our hypothetical 80-litre tank was $4.16 less expensive to fill this week than last.

Gasoline prices slid everywhere except in Newfoundland and Labrador, where they rose 0.4¢ per litre. The steepest drop, 11.2¢ per litre occurred in the Northwest Territories.

Overall, the average gasoline price in Canada has dropped 25.5¢ per litre since its all-time high of $1.383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank now costs $20.40 less than it did only one week shy of three months ago. As the summer driving season comes to a close, the demand for gasoline subsides and with it, the constrain on supply. Consequently, prices decline.

Least Expensive Gasoline in Canada (per litre)

Same four cities in the low-cost five as last week, just some changes in positioning.

Most Expensive Gasoline in Canada (per litre)

As far as the pricey five go, it’s really the pricey six, with Corner Brook tying Whitehorse for fifth place. Otherwise, same players, different order.

Again, the big impact on gasoline prices, besides the end of the summer driving season, is the impact the global financial crisis is having on the price of oil. Last we though things would stabilize once the bail-out bill was passed, however, that seemed to lead to even more uncertainty. Will it have the desired effect? Is it enough? How long will it take? And as we’ve all heard a million times over the past three weeks, the market hates uncertainty. So investors sell off and the first things to lose their shine are commodities. Consequently, the price of oil has dropped below $90 US per barrel.
Our big question last week as “What will happen to gasoline prices once the bill is passed?”

Well, they dropped.

We’ll see what happens next week.

Pricing by Province

	Last Week	This Week	Change
BC	1.315	1.268	-0.047
AB	1.198	1.158	-0.040
SK	1.262	1.240	-0.022
MB	1.232	1.196	-0.036
ON	1.164	1.119	-0.045
QC	1.258	1.191	-0.067
NB	1.203	1.191	-0.012
PE	1.223	1.166	-0.057
NS	1.236	1.204	-0.032
NL	1.331	1.335	0.004
YT	1.399	1.309	-0.090
NT	1.534	1.422	-0.112

Prowling the Pumps – September 30, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada dropped for the third week in a row, this time by only 2.5¢ per litre. Our hypothetical 80-litre tank was exactly $2.00 less expensive to fill this week than last. Gasoline prices slid everywhere except in the Yukon and Manitoba, both of which stayed at the same price as last week.

Of those provinces that did see a drop in prices, New Brunswick and Prince Edward Island led the way with decreases of 5.5¢ and 5.3¢ respectively. Ontario ranked third with a 4.7¢ decline.

Overall, the average gasoline price in Canada has dropped 20.3¢ per litre since its all-time high of $1,383 per litre during the week of July 15. And this means that our hypothetical 80-litre tank costs $16.24 less than it did two and a half months ago.

Least Expensive Gasoline in Canada (per litre)

This week it all makes sense. The province with the lowest average prices, Ontario, also has the five least expensive cities in which to buy gasoline.

Most Expensive Gasoline in Canada (per litre)

As far as the pricey five go, same players as last week, different order.
The gap between the least and most expensive is a whopping 46.1¢ per litre. The reasons – distance from refineries, population size and amount of gasoline sold. Taxes aren’t a factor because Yellowknife’s taxes are 1.8¢ per litre less than Ottawa’s.

The big story as far as oil prices are concerned is still the U.S. (and by U.S. the Prowler means global) financial crisis. Every new development sparks a price change. All parties have agreed to the bailout bill. The House of Representatives defeats the bill. President Bush stresses the importance of passing the bill. Senate leaders promise it will pass in the Senate. Obama sneezes. Just after our last report, WTI was trading at $106.88 US per barrel, rose to $115.46 per barrel, dropped to $96.37 per barrel and is sitting around $100 at the time of writing. However, despite these gyrations, the price of gasoline continues to fall. The big question now – What will happen to gasoline prices once the bill is passed?

We’ll see what happens next week.

Pricing by Province

	$/litre	Last Week	This Week	Change
BC	1.333	1.315	-0.018
AB	1.199	1.198	-0.001
SK	1.279	1.262	-0.017
MB	1.232	1.232	0.000
ON	1.211	1.164	-0.047
QC	1.273	1.258	-0.015
NB	1.258	1.203	-0.055
PE	1.276	1.223	-0.053
NS	1.263	1.236	-0.027
NL	1.400	1.331	-0.069
YT	1.399	1.399	0.000
NT	1.567	1.534	-0.033

Prowling the Pumps – September 24, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada dropped a remarkable 15.5¢ this week. Our hypothetical 80-litre tank was $12.40 less expensive to fill this week than last. Gasoline prices slid everywhere except in the Yukon and Northwest Territories, both of which stayed at the same price as last week.

Although hurricane activity in the Gulf of Mexico has abated and actual hurricanes are not a problem this week, some Gulf coast refineries are still out of commission. And only two-thirds of Gulf of Mexico oil production has been restored. This in itself should have pushed oil and gasoline prices higher, but the U.S. financial crisis seems to have had an overall dampening effect on prices.

Least Expensive Gasoline in Canada (per litre)

Despite Alberta having the lowest average gasoline prices, the five least expensive cities in which to buy gasoline are all in Ontario. And Kingston reappears after a one-week absence.

Most Expensive Gasoline in Canada (per litre)

Pretty much the same story as last week for the pricey five. Whitehorse back in, Victoria back out and a bit of jockeying around for the other four.

The financial crisis in the US is causing a lot of volatility in the global oil markets. WTI prices slid as low as $91.15 US per barrel last Wednesday, then rocketed $16.37 US per barrel to close at $120.92, after flirting with $130.00 mid-session. Although part of this rise was due to settling of September futures prior to October becoming the front-end month, a weakening U.S. dollar did put upward pressure on crude prices. Since Monday, oil has remained above $100 US per barrel.

As ever, we’ll see what happens next week.

Pricing by Province

	$/litre	Last Week	This Week	Change
BC	1.475	1.333	-0.142
AB	1.352	1.199 -0.153
SK	1.449	1.279	-0.170
MB	1.409	1.232	-0.177
ON	1.399	1.211	-0.188
QC	1.431	1.273 -0.158
NB	1.406	1.258	-0.148
PE	1.380	1.276	-0.104
NS	1.442	1.263	-0.179
NL	1.525	1.400	-0.125
YT	1.399	1.399	0.000
NT	1.567	1.567	0.000

A stocking full of coal or an atmosphere full of gas?

The more concerned about climate change we get, the more difficult it can be to absorb the only thing more invisible and pervasive than greenhouse gas: guilt. Taking the weight of an entire planet on your shoulders is tiring work, to be sure, and every decision we make to reduce our carbon footprint seems impossibly insignificant when compared to kilotonnes of annual Canadian emissions.

But if years of dealing with crushing guilt has taught us anything, it’s surely that the best (or, at least, easiest) way to defray our feelings of inadequacy are to point fingers. And where better than into our past?

While conventional wisdom tells us that our current levels of pollution far outstrip our past’s, researchers at Reno, NV’s Desert Research Institute have found the highest levels of heavy metals in arctic ice from the periods of highest coal use, namely about a century ago. Taken from Greenland, the core samples suggest that it was during the time that North America and Europe were still voraciously consuming impurity-laden coal that the most pollution was created, as much as two to five times more than our current levels, which are a byproduct of cleaner-burning oil and gas.

It’s important not to read too much into the discovery, assuming, that is, you’re held back by the bounds of personal environmental restraint and the recognition that making more responsible choices about your energy use is an important responsibility.

In the absence of those, however, you’re free to blame your great-great grandfather for everything from the melting arctic ice shelves to your disappearing beer. Personally, I never liked him anyway.

Prowling the Pumps – September 16, 2008

Canadian Gasoline Prices

Average across Canada

The average price of gasoline in Canada rose 7.7¢ this week. Our hypothetical 80-litre tank was $6.16 more expensive to fill this week than last. Gasoline prices rose everywhere except in the Yukon.

Here’s the situation. Hurricane Ike gained strength as it tracked across the Gulf of Mexico, but never reached higher than Category 2. However, its immense size and the storm surge it pushed caused oil companies to shut down production platforms in the Gulf and refineries along the Gulf Coast. This action seemed to prompt a significant increase in the price of gasoline all across North America. However, platforms and refineries were largely undamaged, and restart operations began soon after the storm passed.

Least Expensive Gasoline in Canada (per litre)

For the first time since June 24, Kingston is not the least expensive city in which to buy gas. In fact, for the first time since we began prowling the pumps, Kingston doesn’t even make it into the low-cost five. Ottawa now has the distinction of being the city with the cheapest gas. Must be the election.

Most Expensive Gasoline in Canada (per litre)

Pretty much the same story as last week for the pricey five. Whitehorse out, Victoria in and a bit of jockeying around for the other four.

A lot of things influencing the price oil last week – Hurricane Ike, American investment bank meltdowns, continued rebel attacks on oil facilities in Nigeria – but the main stimulus seems to be a potential world-wide recession. Consequently, the WTI oil price slid to $91.42 US per barrel on September 16, its lowest since early February 2008. Gasoline, on the other hand, seem to be headed in the opposite direction…or is it?.

As ever, we’ll see what happens next week.

You’re sitting on gas, but do you own it?

Cujus est solum, ejus est usque ad coelum et ad inferos — if you’re not up on your Latin, don’t worry. When it comes to drilling for oil and gas, it’s a term that’s as obsolete as the language itself.

Before technology allowed us to drill into the earth or fly thousands of feet above it, land rights extended both ways — up and down. But with the value of subterranean mineral deposits increasing as our society became gradually more and more powered by fossil fuels, those traditional rights were eventually abandoned.

Now, across Canada, while some landholders retain mineral rights to their property, the vast majority (about 90 per cent) are retained by the government. In Canada, property holders who still retain the mineral rights to their land are allied under the Freehold Owners Association, an information and advocacy group.

Recently, however, a group of landowners calling themselves the United Land Owners of Alberta, have recently challenged the Alberta government’s rights to coalbed methane. Arguing that the natural gas produced is actually a renewable resource produced from coal, the group claims that the government has no claim under either the Law of Property or the Mines and Minerals Act. The government, in turn, argues that because coal is a non-renewable resource, the point is moot.

It’s a distinction that’s of particular interest to landowners because, whether or not they want to benefit financially from the transaction, it places control in their hands. For those who feel that the Energy Resources Conservation Board (ERCB), the body responsible for leasing mineral rights, has been given unfair leeway on private property, the possibility of controlling coalbed methane extraction is tantalizing.

Because control, in any language you put it, is always an attractive prospect.

Fuel price fallout

Here at Flow, we’re as aware as anyone that fuel prices drive much more than the cost of fuelling up your car. We’ve mentioned these rising prices again, and again, and again, in noting that, simply: as fuel prices continue to rise (and rise, and rise), something else happens as a result.

The bottom line is that rising fuel prices have spillover consequences across the board, from increased prices for consumer goods to reduced demand for gas-guzzling vehicles. But while some of these rising costs are intuitive, others are either more subtle or, at least, more unexpected. Here, then, are three consequences of rising gas prices that you might not have considered.

(As for the rest, we’ll keep you posted. After all, in a world fuelled by, well, fuel, there’s never any shortage of energy news.)

Fewer fatalities
According to researchers at the University of Alabama at Birmingham, “For every 10 per cent rise in gas prices, fatalities are reduced by 2.3 percent.” And as if those numbers weren’t impressive enough, reductions are even higher among teen drivers.

With the report’s authors, Drs. Michael Morrisey David Grabowski, tracing the lowered fatalities to lower vehicle use and speed (a measure that’s long been known to both improve engine efficiency), the findings prove that there’s something to be said for drivers being forced to use their dangerous vehicles less. And while drivers aren’t likely to cheer higher prices for the fuel they use, it’s difficult to argue with results.

More online visitors
One of the tips often supplied as a counter to the emission-producing problem of international travel is carbon offsetting, but a more basic method is simply avoiding travel altogether. With improved telecommunications technologies, most would-be travelers can simply videoconference their way into a face-to-face meeting, or gather all the information they need online.

For students, as cited in the linked New York Times article above, online classes have long been a way to avoid any number of unpleasant physical realities like overcrowded classrooms and that troublesome Delta House. Delta House!!

In Canada, online schools like Athabasca University boast benefits like flexible schedules and space (i.e, wherever you’d like to be). And with fuel prices making a drive to school prohibitive, the attraction of those benefits is bound to draw more students from brick and mortar to bandwidth and mouse.

Fewer suburbanites

Urban sprawl continues to shuttle millions of Canadians back and forth between their suburban homes and downtown workplaces , resulting in homes being directly responsible for increasing vehicle use. But as that vehicle use becomes more and more costly, the real value of those homes begins to decline even more precipitously than it already is.

For some critics , this is just one of the many secondary benefits of increasing fuel prices — increasing the real costs of things whose cost was otherwise hidden. Now suburbanites, in addition to finding a home with the requisite square footage and master-bedroom-accessible-bathroom, have to consider the cost of their daily commute as well.

Hailing higher prices

Like truck drivers and airline employees, taxi drivers depend on the price of fuel for their livelihood. But, as with all Canadians, they’re also being directly affected by the rising cost of the fuel that makes their jobs possible. And as fuel costs go up, so too go taxi fares.

Toronto cab drivers recently obtained permission from the city to increase their rates, and the trend extends across the country, from Calgary to Montreal.

Depending on your ability or willingness to pay the new fees, the news could mean an added consequence of rising fuel prices (as if there needed to be another), or a trip on your city’s already taxed public transit system. But taxis aren’t the only fare-based public transportation whose costs are on the rise.

Ferries are also feeling the effects of rising fuel costs, similarly hoping to raise their fees to compensate. The potential rise in price has been enough for no less an organization than BC Ferries to call for fixed links between Canada’s west coast islands, much to the chagrin of locals who enjoy their relative isolation. And on the east coast, Nova Scotia has just committed millions to offset fuel costs and maintain existing ferry routes.

What’s clear is that consumers can’t be expected to remain insulated against the costs of high fuel prices, even when they eschew their own vehicles. The only way to hit the road without concern for fuel costs remains a long, hard walk, and even that has a carbon footprint to consider.

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