Why Feds Won't Cut Gas Prices

In finance, a hedge is an investment that is taken out specifically to reduce or cancel out the risk in another investment.

Some form of risk taking is inherent to any business activity. Some risks are considered to be "natural" to specific businesses, such as the risk of oil prices increasing or decreasing is natural to oil drilling and refining firms. Other forms of risk are not wanted, but cannot be avoided without hedging. Someone who has a shop, for example, can take care of natural risks such as the risk of competition, of poor or unpopular products, and so on. The risk of the shopkeeper's inventory being destroyed by fire is unwanted, however, and can be hedged via a fire insurance contract. Not all hedges are financial instruments: a producer that exports to another country, for example, may hedge its currency risk when selling by linking its expenses to the desired currency. Banks and other financial institutions use hedging to control their asset-liability mismatches, such as the maturity matches between long, fixed-rate loans and short-term (implicitly variable-rate) deposits.

It seems to me that the risks are over exaggerated or even put deliberately at risk so the oil industry, oil companies, can make record profits and if one looks at supply and demand along with re-investment and investment into refineries and new refineries one must ask oneself if their is some desire to promote high risk to sustain higher and record profit at the consumers expense.

In my opinion there should be government regulations put in place to ensure re-investment and development of the oil industry, even if this means they have to be forced to re-invest and develop, as well as monitoring of industry profit so there is no question as to its legitimacy.


---
Perception is two thirds of what we perceive reality to be.

Difficult decisions are a privilege of rank.

Again, here is an example of someone wealthy enough that he simply doesn`t care. Harper can surely afford gas at $3.00 a litre or more. He`s surely out of touch with average Canadians. Going to Ottawa Senator`s games, trying to fool all of us that he`s 'One, proud, Canadian' simply doesn`t quash his deeds as sellout.

---
Dave Ruston

Joe Clark lost his election because he wanted to raise gas prices. Pierre won because he promised not to do that - then promptly went and did anyway.

Canadians don't seem to want to bother with important issues come election time - seems we like to dwell on what's the least important, like eliminating photoradar in BC (Gordon Campbell)comes to mind. So maybe this "suck it up" attitude of Harper's will do him in, come poll time (we can but hope).

---
"When you change the way you look at things, the things you look at change."
-Max Planck

50% of Canadians can't afford a playoff ticket either - even when they are already employed full time.

---
If there was ever a time for Canadians to become pushy - now is the time - for time is running out on this nation called Canada.