Quote:
Originally Posted by HVA7mm
I'm not refuting the overall financials of the O&G companies, as their financials are readily available. I also have friends that work directly for major producers both in Calgary and in Houston, and know that the profit margins have been increasingly narrow in the last 5 years especially in Canada.
I think that most on this board, myself included, are more interested in the regional anomalies in the rack prices i.e. "the prairies". The answer that you had provided was "Volume most likely". Would you mind elaborating, as I think that everyone has a pretty good idea about supply and demand, but the local inflated rack pricing doesn't appear to be justified.
Don't get me wrong, I like many others are invested in the major players, but my dividends and rate of return certainly don't reflect the extra 35-45% that I am currently paying regionally for their product.
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I am not an expert however what I know is Vancouver and Toronto with their population consume far more gasoline than us. Creating a volume discount. There is also regional marketing and transportation considerations.
Your statement above regarding a bump gasoline prices between jurisdictions sounds more like a request for Toronto to field some of the pricing burden.
However I am not sure the same players, nor the same suppliers are feeding the markets in Toronto versus Calgary/Edmonton. Vancouver also gets some product from Washington as well as batch pipelining from Alberta.
Therefore hard to say an apples to apples comparison.