Oil prices brush $70 US a barrel
Last Updated Apr 17
2006 11:35 AM CDT
Oil prices briefly touched $70 US a barrel on Monday as apparent investor nervousness about U.S. supplies and global issues pushed the May futures contract for light sweet crude to a seven-and-a-half month high.
In morning trading on the New York Mercantile Exchange, the May contract pulled back slightly to trade at $69.77 US a barrel, up 32 cents from Thursday's close.
You know what this means for the governments of Saskatchewan, Alberta and British Columbia? It means "spend it while you got it." As Brian Crowley from AIMS points out, oil and gas revenues are "one-time" revenues. Once that hydrocarbon is pulled from the ground and sold on the market, it's gone forever. It's an asset that is constantly being reduced in value -- like drawing from your RRSPs before you retire.
Politicians don't see it that way. They see high oil prices as an oppornuty to "invest" in social programs. Incredibly short sighted.