The president of Canadians for Affordable Energy says gas prices that are dropping almost daily are a sign of serious problems ahead.--NEWS PHOTO JEREMY APPEL
gslade@medicinehatnews.com@MHNGillianSlade
Canadians for Affordable Energy says people should be troubled by the price of gas dropping on an almost daily basis.
Nine months ago Hatters were paying 117.8 cents a litre at the pumps. Less than a month ago it was 109.9 cents. In the last week the decline has been almost daily with prices at 88.9 cents on Friday.
Dan McTeague, president of Canadians for Affordable Energy, says people should be concerned about oil going from $63 a barrel to less than half of that in about eight weeks. It is a serious indication of what lies in store.
“It has a direct, long-lasting and painful effect on both the finances of the country and the province as well as on the prospect for jobs and of course your standard of living,” said McTeague.
To a large extent it is beyond control with Russia and Saudi Arabia “in some kind of game” in terms of oil production that is driving the price down, he said. It means countries and provinces are having to rethink economic forecasts.
“For us there is no choice. We have to curtail oil production … in an environment that is nothing short of panic stricken,” said McTeague.
Traders are reacting out of concern that there could be a recession and the threat of COVID-19 around the world is adding to it, he said.
It reminds McTeague of U.S. President Franklin Rooseveldt’s inauguration speech in 1933 at the peak of the Great Depression: “The only thing we have to fear is fear itself.”
Early Friday morning the international markets for oil and gas indicated a small increase. By the time the North American market was on stream there was a “frenzy,” said McTeague.
“They effectively pushed oil futures down $2.50 a barrel … and gasoline is actually in negative territory right now,” said McTeague. “It is clear what is driving this economy is driving the markets. There is nothing short of hysteria.”
