At the end of October, I published a piece suggesting short term pro-rationing could be an equitable way to solve the problem of heavy oil over production in the province of Alberta. Since then, there have been numerous articles in the press agreeing with my proposal but also many scorning it and suggesting the free market should solve this problem. As a result of these comments, I would like to suggest the free market in regard to oil is a myth and reliance on this mantra will result in [Read more]
Lamond: Low Canadian oil prices call for an old remedy – prorationing
Canadian oil prices, especially heavy crude prices, have been enormously low over the past year due to the lack of take-away capacity. The press is full of accounts of Alberta and its oil producers losing up to 100 million dollars per day due to high differentials and discounted oil prices. This situation is likely to continue for the next two to three years and lead to enormous losses for Canadian producers and the Alberta government. This is particularly significant as Alberta holds royalty [Read more]