{"id":42537,"date":"2019-01-10T10:29:40","date_gmt":"2019-01-10T15:29:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42537"},"modified":"2019-01-10T10:29:40","modified_gmt":"2019-01-10T15:29:40","slug":"oils-wild-price-swings-set-to-create-global-chaos","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42537","title":{"rendered":"Oil\u2019s Wild Price Swings Set to Create Global Chaos"},"content":{"rendered":"<header class=\"article__header\" data-dev-object-descrip=\"organisms\/article\/article__header\" data-dev-status=\"IN-PROGRESS\">\n<div class=\"container-fluid\">\n<h3 data-bind=\"title\"><a href=\"https:\/\/thetyee.ca\/Analysis\/2018\/12\/05\/Oil-Wild-Price-Swings\/\">Oil\u2019s Wild Price Swings Set to Create Global Chaos<\/a><\/h3>\n<p data-bind=\"teaser\"><strong>Volatility is here to stay \u2014 and the political and economic implications will touch us all.<\/strong><\/p>\n<\/div>\n<\/header>\n<section class=\"featured-media\" data-dev-object-descrip=\"02-organisms\/article\/featured-media\">\n<div class=\"container-fluid\">\n<aside class=\"ad-box ad-box--halfpage\" data-dev-object-descrip=\"01-molecules\/blocks\/ad-box\"><\/aside>\n<figure class=\"figure \" data-dev-object-descrip=\"01-molecules\/blocks\/figure\"><img loading=\"lazy\" decoding=\"async\" class=\"responsive-img\" src=\"https:\/\/thetyee.ca\/Analysis\/2018\/12\/04\/PortArthurOilGusher.jpg\" alt=\"PortArthurOilGusher.jpg\" width=\"800\" height=\"629\" \/><figcaption class=\"caption\">Oil once gushed from the ground for drillers, like these workers in Port Arthur, Texas, in 1901. Now costly fracking and oilsands mining produces lower-quality oil at far higher costs. <span class=\"caption__media--credit\">Photo: US Library of Congress.<\/span><\/figcaption><\/figure>\n<\/div>\n<\/section>\n<article class=\"article__body main-col-container\" data-dev-object-descrip=\"organisms\/article\/article__body\" data-dev-status=\"IN-PROGRESS\">\n<div class=\"container-fluid clearfix \">\n<p>As the current global oil glut shakes up petro states around the world, oil prices are becoming more volatile than Donald Trump tweets.<\/p>\n<aside class=\"aside hide-on-narrow-vp\" data-dev-object-descrip=\"01-molecules\/blocks\/aside\" data-dev-status=\"IN-PROGRESS\"><\/aside>\n<p>Neither Canada, now the dumb owner of a marginal 65-year-old pipeline, nor Alberta, a key exporter of bitumen, a cheap refinery feedstock, has paid much attention to this revolution.<\/p>\n<p>As a consequence Canada has no strategy to deal with the new normal of highly volatile oil prices.<\/p>\n<p>Government incompetence <a href=\"https:\/\/thetyee.ca\/Analysis\/2018\/11\/23\/Alberta-Policy-Problems\/\">explains<\/a> the hew and cry in Alberta about its overproduction crisis and the various proposals to solve it, ranging from the <a href=\"https:\/\/globalnews.ca\/news\/4707694\/rachel-notley-rail-cars\/\">purchase<\/a> of rail cars (a bad idea) to the <a href=\"https:\/\/www.cbc.ca\/news\/business\/notley-oil-cuts-1.4929489\">decision<\/a> to order companies to cut production of heavy oil by about 325,000 barrels a day (a sensible idea).<\/p>\n<p>Alberta\u2019s panic attack is based on the idea that bitumen from the province\u2019s oilsands producers is selling at a discount because of a lack of pipeline capacity.<\/p>\n<p>The reality is that the dramatic 30-per-cent drop in oil prices since the beginning of October, from more than US$70 to US$50, is upsetting oil exporters, producers and markets around the world.<\/p>\n<p>Different kinds of oil fetch different prices, based on their quality and transportation costs. And all are experiencing dramatic price drops. Alberta\u2019s bitumen, a cheap refinery feedstock, is not the only crude languishing during a global market glut.<\/p>\n<p>Refineries in Japan and Korea, for example, <a href=\"https:\/\/www.reuters.com\/article\/us-usa-trade-asia-oil\/u-s-oil-exports-to-japan-south-korea-soar-as-refiners-reap-steep-discounts-idUSKCN1LR0FD\">scooped up<\/a> cheap U.S. oil earlier this year.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"<p>Oil\u2019s Wild Price Swings Set to Create Global Chaos Volatility is here to stay \u2014 and the political and economic implications will touch us all. Oil once gushed from the ground for drillers, like these workers in Port Arthur, Texas, in 1901. Now costly fracking and oilsands mining produces lower-quality oil at far higher costs. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[1082,5549,103,4075,331,23836,592,595,3540,5499,2773],"class_list":["post-42537","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-alberta","tag-andrew-nikiforuk","tag-canada","tag-chaos","tag-fracking","tag-global-chaos","tag-oil-price","tag-oil-production","tag-oilsands","tag-the-tyee","tag-volatility"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42537"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42537\/revisions"}],"predecessor-version":[{"id":42538,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42537\/revisions\/42538"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}