The lack of hurricanes this year has kept oil prices lower than what we might have expected - in fact if not for the war in the Middle East the consumers would get a break and big oil would be running out of excuses.
Another reason why, when you own hydro you DO NOT export your best competitive edge. In an earlier post I referenced a couple of articles discussing the problems in the paper industry. China with it's cheap labour and the high dollar are causing problems for North American jurisdictions with paper companies. On the local side energy prices and availability of wood are complicating the problems.
Ontario and Quebec are pumping hundreds of millions into the sector to save jobs and the industry in their provinces. They know that cheap labour can be competed with through the use of reliable cost efficient power. They want our lower churchill power to keep that momentum going. Where does that leave Newfoundland and Labrador? Out in the cold and in the dark. Labrador should hang on to the power and attract the paper mills in. Stephenville should demand the same.
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On oil prices...
Maybe a break soon at the pumps if the peace holds in the Middle East.
Price today
$73.14 US Crude
$73.67 London Brent
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