Most people are benefiting from these low gas prices

Post Reply New Topic

Coal is also bad, so is oil.
The problem is when gas is high, like 10$ a gallon for example, people and companies work on ways to make more fuel efficiency vehicles for example, there is a VW here in Europe that only consumes less than one gallon per 65 miles done, and that is the result of high prices for the past years, so really 10$ a gallon just means they will be selling less gas. Some other companies with such high prices developed cleaner energy methods, and the boom of electric cars is a result also of high prices, again, here in Europe where distances are shorter than in northern America more and more people are buying electric cars (especially in cities)...
Plus it's a free market out there, if oil companies wanted they could sell gas for 50$ a gallon, so why don't they do it? Because people would turn to alternatives...
Anyway, it's about time we get rid of oil for good, humanity needs to evolute... My only concern is airline travel, unless we put nuclear reactors on planes I don't see any other methods to get a 747 or an A380 up in the sky without oil. But for individuals and cars, we can do fine without oil.

Walrus:

That is precisely what is cost in 1972: 35 cents a gallon.

In 1972, you were already in the post-decimalization era. No more shillings! It was 35.25 pence per gallon on average, according to the AA Motoring Trust. Much more expensive than in the US.

In 1973, with the embargo, it went up to the 50's immediately.

It's more like 0.22 gallons per litre.

To get the price per gallon: Multiple the litre price by 3.76. It's 3.76 litres to the US gallon.

English gas is expensive! How much is it now?

I think what happens is some company has a lot of oil, shale oil in this case, and they pretty much say okay it's on the market but we are selling it for $3.00 instead of $3.50 buy our oil instead (or sixty dollars a barrel instead of eighty). They say this to the refineries and then the refineries take a look and say they gotta buy these cheaper barrels so then some other company comes along and says alright we'll go to $2.25 or fifty dollars a barrel and before you know it, the oil is much less than it was maybe a few days earlier. So when you have new companies with a whole lot of new oil, it drives the price down because they put it on the market cheaper

It might be Saudi Arabia and OPEC trying to stay in the game with this cheaper oil by not being undersold because if they keep their barrels at eighty while everyone else's are at fifty, you can pretty much guess what happens to their oil. It doesn't get bought, it just sits and they make zero dollars, but it's this new oil that's driving the price down. OPEC has mostly old oil.

If they knock the price down far enough, pretty soon all these refineries are buying the new oil instead of the old so it would squeeze OPEC out unless they went along with it.