How far can it drop?

We can only hope that gas prices will go down to the low prices they once were.

Letter writer asks if gas prices continue to fall whether we will see prices as low as 55 cents per litre again.

Dear Sir:

About two decades ago crude oil was trading at $20 per barrel and prices at the pumps were 55 cents a litre.

Taxes did not change much since that time but the carbon tax was added.

Currently West Texas Intermediate (WTI) is trading below $27 per barrel and Western Canada Select (WCS) is at $13.75 per barrel (a 50 per cent discount, as compared to a 20 per cent discount in the past).

Gas prices in places like Edmonton, AB and Calgary, AB are below 70 cents a litre and falling, even in Prince George, BC prices are under 80 cents a litre.

On the worldwide scale there is currently an over production of over 1-2 million barrels per day and storage of crude oil exceeds over 1 billion barrels and is estimate to rise by an additional 260-plus million barrels in 2016.

That amount in storage means if all oil production, in the whole world, would be shut down in one day there is enough in storage to keep the world going for almost 2 months before running out.

The US has inventories of crude of levels not seen in over 8 decades and one company is offering to “buy” your crude if you give them 50 cents a barrel.

In context that would be the same as you and I going to a store and “buying” their product but the store giving us money to take the product home.

How long would those stores keep their doors open?

Now the question is if/when crude falls further to $20 a barrel for West Texas and below $10 for Western Canada select will we see prices at the pumps of 55 cents a litre again?

Martin Holzbauer,

Thornhill, B.C.

Just Posted

Nearly $500,000 available for internships with northern B.C. First Nations governments

Funds announced through partnership with Northern Development and Government of Canada

Terrace husband and wife honoured for saving each other’s lives

BC Ambulance presented each a Vital Link Award for separate incidents of CPR

$15 million spent on cancelled transmition line

BC Hydro had already spent approximately $15 million on planning a new… Continue reading

College buys a yurt to boost student success

Round tent-like structure part of college instructional shift

Council supports lobby for fair share of cannabis tax revenue

The City of Terrace is throwing its support behind a West Kelowna… Continue reading

B.C. cougar kitten rescued after mother struck by vehicle

Conservation Officers find home for young kitten found dehydrated and frostbitten near Williams Lake

Animal protection group urges B.C. vet association to ban cat declawing

Nova Scotia was the first Canadian province to ban declawing

Barenaked Ladies, Steven Page, to be inducted into Canadian Music Hall of Fame

Canadian band to get top honours at 2018 JUNO Awards

B.C. out of the running for Amazon’s next headquarters

Toronto is the only Canadian city left in the running despite the province backing Metro Vancouver’s bid for new Amazon headquarters

B.C. hockey player nominated for Hobey Baker Award

Myles Powell is a forward at Rochester Institute of Technology

Post interest rate hike debt tips

What to do about your debt and mortgages after the interest rate hike

Foreign workers sleeping in Alberta Burger King basement

Alberta Health Services said its inspectors found foreign workers sleeping in the basement of the Lethbridge restaurant

Court application halts release of bread price-fixing documents

Bread price-fixing documents won’t be unsealed Thursday, Loblaw says

Pharrell and N.E.R.D to headline NBA All-Star halftime show

11-time Grammy winner Pharrell and his hip hop-rock band N.E.R.D. will headline the halftime show at the 2018 NBA All-Star game in Los Angeles

Most Read