The problem inside of BC really hasn't got anything to do with lack of competition, if anything it is there is too much. The supply of gas "product" is effectively in short supply compared to the demand and so simple economics show that price will then go up.
The model is made worse with the political interference by this government with the neighbor over a pipe or more to the case, and new pipe that will transport oil to ship overseas.
BC itself doesn't have much refinery capacity to make its own gas from oil, so it has to import in the manufactured product along with the oil for what capacity it has. This war on words over the pipe has caused the importers of gas to hedge their bets and charge more to cover the cost of uncertainty.
Then you throw in the side that the local government has mandated that all new cars by 2040 must be zero emission, so even though there is a demand right now for increased capacity to gas, they don't want to make more refineries to manufacture it because:
1. The demand for it will lessen after 20 years, and it will take at least 7-8 years to get a refinery built.
2. A refinery makes pollution and they are trying to become a much cleaner and greener province. Or at least the appearance of it.
3. They are the ones that are causing the problem in the first place with the argument over the pipe and it makes their position worse or at least look bad in their fight to stop the pipe if they start looking into making a refinery,
4. They know with some of the Federal bills they support, specifically Bill69, that if that even if the first 3 points were not an issue, it could never get built as the new proposed law will effectively kill any and all new construction of anything to do with oil.
The funny part is that Canada as a whole account for such a small part of the global amount of CO2 produced that anything done to reduce the footprint is effectively window dressing. It is sort of like when you go to a concert and the band gets the audience to sing. Your voice might sound loud to you, but really in the bigger picture doesn't make a lick of difference to the total sound of everyone singing. If you stopped, the people at the other end of the stadium wouldn't know. It takes a large number of people to make the sound. The USA, China, India, Rusia are all big enough groups that as a whole we have a problem. There are enough people inside these groups to produce a large amount of CO2 that it has affected the planet. It will take enough of these large groups to want to stop or at least cut down for change to start happening. I know the change is happening in the USA and it's great that it is. I think it is starting to happen in China too. Sadly I fear it is not in India, and that in reality it is just getting worse there and offsetting anything that the USA has done to get better.
2018 Niro EX - Ocean Blue
GTA - Canada.
Last edited by Roadkill401; 04-27-2019 at 08:32 AM.