I have just about given up on hearing any honest dialogue about oil and gasoline prices from politicians. They regularly play politics on energy issues with little regard for facts.
The Republicans blame the Democrats for high gasoline prices. They insist that surging prices are a result of President Biden’s policies. I have addressed these claims previously (here, for example).
Democrats, for their part, regularly cast blame upon the oil companies. In the past week, two prominent Democratic House members did just that. First Representative Katie Porter highlighted Shell’s profits, and promised to crack down on price gouging.
Then, Representative Adam Schiff tweeted:
I don’t believe Rep. Porter and Rep. Schiff are ignorant. They may not understand the intricacies of oil and gas pricing. They may not know that this is well beyond the control of oil and gas companies. Or, that surging prices — which oil companies do not control — will indeed lead to surging profits. But they are mixing up cause and effect.
I bet if you asked them “Why are oil and gas prices rising?”, they would at least understand enough not to answer “Because Big Oil is making them rise.”
But, I think both of them are just playing politics. They understand that demonizing oil and gas companies shifts blame, and it is popular with the public to hate the oil companies. The result is that the public thinks of oil companies with the same kind of contempt with which they hold cigarette companies — despite the fact that these companies provide a critical service for most people.
The problem with this kind of thinking is that it leads to bad energy policies. Instead of passing policies that actually address supply and demand, we end up passing punitive policies that are counter-productive.
Regarding Representative Schiff’s tweet, there are multiple reasons that gasoline prices wouldn’t rapidly respond to an underlying change in the price of oil. One is simply that oil doesn’t instantly get converted into gasoline and arrive at the store for sale.
But there’s something else going on here, in case he is interested in digging a bit deeper. As of February, the U.S. was still importing half a million barrels per day of diesel and gasoline from Russia. That has stopped, and this has caused some market disruptions.
U.S. refineries are struggling to keep up with demand. Distillate levels are very low and jet fuel demand has come roaring back. So, refiners are making as much distillate and jet fuel as they can. However, that shifts the product spectrum somewhat from gasoline production, at a time that we are already missing those Russian imports.
Most of the time oil and gasoline prices are tightly correlated, with a slight time lag. Sometimes, however, there can be issues at the refining stage that can cause oil and gasoline to move in opposite directions.
Imagine a situation where U.S. refining capacity is constrained, but gasoline demand is high. In that case, there may be less demand for oil, because it simply can’t be pushed through the refineries. So you could see crude oil stocks start to rise, and prices soften, while at the same time gasoline prices remain high. This is very similar to the situation we have now.
Most of our imports from Russia were finished products. Now that those have been banned, the market is scrambling to adjust to the loss of those products. It is true that this is a slightly more complex answer than “The oil companies are ripping us off”, but it’s an accurate reflection of what is actually happening.
New Brunswick voters have elected a Liberal majority government, tossing out the incumbent Progressive Conservatives after six years in power and handing the reins to the first woman ever to lead the province. Liberal Leader Susan Holt spent much of the campaign rolling out proposed fixes for a health-care system racked by a doctor shortage, overcrowded emergency rooms and long wait-times. She promised to open 30 community health clinics across the province by 2028. (Oct. 22, 2024)
Susan Holt has made history in New Brunswick by becoming the first woman to serve as the leader of the province’s Liberal Party, a significant milestone in the province’s political landscape. Holt’s leadership victory signals a new era of representation, gender equality, and change in the region, which has long been dominated by male politicians.
Holt’s journey to the top has been one of perseverance and dedication. Before entering politics, she built a distinguished career in the private sector, where she held numerous leadership positions. Her experience in business development and public policy has equipped her with the skills needed to navigate the complex world of politics.
In a province where women have historically been underrepresented in politics, Holt’s election represents a watershed moment. Women’s involvement in leadership roles has been steadily increasing nationwide, but New Brunswick, like many parts of Canada, has seen slower progress in achieving gender parity. Holt’s rise to the top of the Liberal Party not only shatters a glass ceiling but also serves as an inspiration for future generations of women aiming for political leadership.
As the leader of the New Brunswick Liberal Party, Holt has laid out a vision of inclusivity and progress. Her policies focus on economic development, healthcare reform, environmental sustainability, and addressing social issues that have plagued the province. She has also emphasized the importance of transparent governance and creating opportunities for underrepresented communities, making her platform both modern and forward-thinking.
Holt’s leadership arrives at a time when many voters are calling for change, especially in the face of challenges like economic uncertainty and the need for healthcare improvements. She aims to bring fresh ideas to tackle these issues while ensuring that all citizens, regardless of their background, have a voice in government decisions.
Susan Holt joins the ranks of other trailblazing women across Canada who have led provincial parties and governments. Women like former Alberta Premier Rachel Notley and Ontario’s Kathleen Wynne have paved the way, and now Holt is contributing to this growing legacy of female political leadership in Canada.
Her achievement highlights not only the growing number of women entering politics but also the demand for leaders who can bring diverse perspectives to the table. In a field often dominated by entrenched traditions, Holt’s election is a step toward a more inclusive and representative political landscape in New Brunswick.
Holt’s leadership signals a broader shift in Canadian politics, where more women and diverse voices are gaining prominence. For young women across the country, her rise serves as a powerful reminder that leadership roles are within reach, even in traditionally male-dominated spheres.
With her election, Susan Holt has proven that perseverance, skill, and a vision for change can break even the toughest barriers. Her leadership will not only reshape New Brunswick’s political future but also inspire others across Canada to pursue leadership positions and continue to challenge the status quo.
NDP Leader Carla Beck has two planned campaign events today, starting the day with an availability in Moose Jaw and then later this evening attending an event in the capital with the Regina Medical Staff Association.
Saskatchewan Party Leader Scott Moe, meanwhile, will speak in Prince Albert at the start of Voting Week in the province.
Saskatchewan residents can vote for five days starting today in the lead-up to next week’s provincial election, although polls won’t be open Sunday.
The NDP and the Saskatchewan Party are urging voters to cast their ballots early.
Voters can find their polling stations on their information cards or by visiting the Elections Saskatchewan website.
Chief electoral officer Michael Boda says there are about 810,000 registered voters in Saskatchewan.
This report by The Canadian Press was first published Oct. 22, 2024.
