Subcommittee on Oil and Gas and Other Energy Prices committee  The principal reason really comes down to supply and demand balances. There has been a much greater demand, and growth in demand, for diesel over the last number of years than there has been for gasoline. So the supply and demand situation for diesel, not just in Canada but in No

Subcommittee on Oil and Gas and Other Energy Prices committee  Because it's very difficult.... Our Canadian refineries are configured in what has traditionally been the split between gasoline and diesel demand. So those refineries are configured to produce a certain proportion of diesel and a certain proportion of gasoline. That can't change

Subcommittee on Oil and Gas and Other Energy Prices committee  We're talking about a hypothetical situation, and I'm having a hard time understanding when that hypothetical situation actually exists.

Subcommittee on Oil and Gas and Other Energy Prices committee  I don't believe that was the case this summer. In fact, when we look at the various components that comprise the price of gasoline for Canadians today and this summer, the change has largely been driven by the price of crude--

Subcommittee on Oil and Gas and Other Energy Prices committee  It doesn't mean big profits for the refining sector, because I can tell you today that refining margins, which are a relatively small component of the difference between the price of the crude that refiners pay and the wholesale price they get when they sell, are now 8¢ to 9¢ bel

Subcommittee on Oil and Gas and Other Energy Prices committee  No, I think oil company profits today are largely being driven by the exploration and production side of their businesses and the high global price for crude, which isn't set in Canada.

Subcommittee on Oil and Gas and Other Energy Prices committee  Without looking specifically at individual financial reports of publicly traded companies, I think there's a pretty good correlation between profits and the price of crude.

Subcommittee on Oil and Gas and Other Energy Prices committee  I think what you're seeing there is an even tighter supply-demand situation on middle distillates, including diesel, than there is on gasoline. I think that's particularly tight in the Atlantic basin. Europe has a huge demand and thirst for diesel these days because of its signif

Subcommittee on Oil and Gas and Other Energy Prices committee  My unequivocal answer is absolutely not.

Subcommittee on Oil and Gas and Other Energy Prices committee  I'm not sure I understand your question. Could you be a little more specific on what you're trying to ask?

Subcommittee on Oil and Gas and Other Energy Prices committee  I would dispute that. I think the prices go both up and down very quickly, almost instantaneously, in response to the price of crude. What I also would reiterate is that throughout all this, and notwithstanding the volatility, Canadians still pay the second lowest price for gasol

Subcommittee on Oil and Gas and Other Energy Prices committee  Certainly the high prices for crude act as an incentive to explore and particularly look for crude in what would previously have been uneconomic areas and uneconomic reserves. So yes, I would agree with Mr. MacLean that high prices do act as an incentive to find more, particularl

Subcommittee on Oil and Gas and Other Energy Prices committee  You're talking only about the supply side of what is a complex supply and demand equation. Clearly the demand side is ultimately going to have a significant impact on what that supply-demand balance is that ultimately is a fundamental behind prices.

Subcommittee on Oil and Gas and Other Energy Prices committee  I would repeat my earlier remark, that certainly there are seasonal fluctuations given to supply and demand that have some impact on prices, but—

Subcommittee on Oil and Gas and Other Energy Prices committee  —there is no empirical evidence, to our knowledge, that would support the assertion that gas prices traditionally go up at the beginning of long weekends.