Wednesday, August 02, 2006

Heat

I was driving to work and I noticed that gas at Petro Canada was $1.10 a liter. That's about $4.18 a gallon. Seriously. If you live in America, you're probably thinking "My god - that's freaking expensive for a gallon of gas..." and, well - it is freaking expensive for a gallon of gas. What's worse is that it's even more freaking expensive for a liter of gas than we're used to. When I moved to Waterloo a little over two years ago - a liter of gas was $0.74. Two years and a $0.40 increase - not the worst on Earth, but still.

When interviewed, Oil company execs will say the price of gas is going up simply due to an increase in demand and not enough increase in production. The blame on the lack of production is often attributed to environmentalists - who work to block the construction of new oil refineries and drilling in the environmentally sensitive areas like the Gulf of Mexico.

It sounds like it makes sense - but then there is some bullshitting going on here. Please explain to me how demand can rise so much in 12 hours that last night gas was $1.02 a liter and now is $1.10 a liter. In the last three months, gas prices have gone up and down quicker than a manic depressive with an endless supply of coke and valium. $0.98 in the morning and then $1.07 at lunch - in the same day?

It's such a futile thing to complain about. Even now, when I see a liter for $1.02 - I think to myself what a great deal that is. In three months, $1.02 has become the new "cheap gas" - while in Decemeber, $0.95 was the "cheap gas". In all likely hood - $1.10 will be my new marker for when to fill up the tank. Or maybe i'll start riding my bike and see if that helps bring demand down.

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Update - gas is now $1.14 a liter.

2 comments:

Reverend Moloquin said...

We should all drive more to use the oil up quicker. After all, only 44 years or so left of it in the ground. Quicker we get rid of it, the happier we'll all be. Who'd of thought a bunch of dead lizards would cause so much trouble.

Nicole said...

Two weeks!! Where you at, A-lex!?!