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Well the price of Crude Oil at this point is quite high, with the instability of the regions from which the US buys oil (venezuela, middle east), resulting in higher expenses for everything after it in the gasoline chain. It's called the multiplier effect in economics. Basically it means that one effect is going to have multiple repercussions throughout the economic system that add up to great amounds. So for instance - if crude costs more, than the refineries lose more money so to make a profit they have to charge even more, and then the gasoline companies have to charge more in turn. That sort of thing.

The government has relatively little control over the prices of gas. Despite what the media might be trying to tell you - they always talk about using the "Strategic Oil Reserve", using those reserve barrels actually won't change the prices much - maybe only as much as three cents. Bill Clinton actually tapped into the reserve at the end of his presidency to help his VP Al Gore get elected, and prices only went down a penny. So people that are blaming the White House for this are either misled or are trying to mislead you (y)

IIRC The Saudi government just made a deal with the US government to increase the export size from 8 billion barrels to 9 billion barrels which hopefully will result in some lower prices.

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IIRC The Saudi government just made a deal with the US government to increase the export size from 8 billion barrels to 9 billion barrels which hopefully will result in some lower prices.

Yes indeed, but at one point, the daily oil exprotation won't raise any longer and oil prices will rise higher and higher ... the whole point is about oil consumption in the US ... I remember when I went to the US, I was outraged by the low price of oil ... it doesn't encourage people to reduce their oil consumption. Moreover, with enormous engines (like what I rented was a V8 3.2l van) you cannot save a penny on oil. When American cars use as little oil as European cars do, maybe there will be a change in oil prices ...

Same with electricity producing. Europe has, in the whole, given up oil-produced electricity. France works with 85% nuclear power, Germany is counting on its ecological power, so is Denmark, etc ...

Just a remark ... shouldn't this thread be in Hall of Intellectuals?

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The primary cause for the oil price rising is the economic boom the entire world has been undergoing recently, especially China and the USA, which raised demand for oil, raising the prices. Of course, issues concerning the stability in oil-exporting countries (especially Iraq) contributed to this as well.

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Yeah, people say a lot of things about us, like we went into Iraq just for oil, we're coverring up evidence of alien visits to Earth, ect. But those IMHO are just opinions made by others for various reasons, and unless proof can be found to prove their opinion correct, it remains nothing more than a opinion.

Sorry for that rant. :banana:

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Prices can vary.

Here, where I live, in a small town north of Montreal, the price of gaz is about 0,93 $CA/L. In Montreal, they are about 1 $CA/L (in fact, a little less, because when it will reach 1$, people will freak out in Quebec). (1 $CA = 0,75 $US = 0,63 EUR ; 1 US-GAL = 3,875 L)

As for prices, we have the highest prices of North America, but they are somehow lower than in Europe. Why it is so is that no more Gaz is produced in Quebec, everything being produced in Ontario (Sarnia's fields). We also have higher taxes on gaz, which brings up a little higher the gaz price. Importing is always high-costing. Importe implies a lot of costs, but instability indeed plays a lot, but not as much as we could think. In Quebec, we rely on gaz that mostly comes from Europe (North Sea).

That's why in Quebec, we are mostly against using Gaz to produce electricity (we use Hydroelectricity, and were moving on Windmill-electricity :muaha:, because it's becoming cheap in Quebec ). In fact, we have the cheapest price on electricity : everyone wants to by electricity to us. New York City indeed is one of a possible buyer :lol:. Also, there are researches on electric cars, and there are some already built.

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(beer.gif

Well, same as in the whole of Europe ... Gas is $5 a gallon ... that is €5 a gallon (or €1 a liter :muaha: )

Seems pretty normal to me ... at least, we try to economise it and our car companies (Renault, VW, Peugeot, Seat, Fiat, etc ...) do their best to design car that spend roughly 5 liter per 100 km ... that is 70 miles a gallon!

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