OT: Gas Prices

[Will]

Ok, I voted:
1) Maybe. While true that there has been zero increased refining capacity since... I think around 1970... it is also true that the cost of a barrel of crude oil is hovering close to $80 right now; for comparison, I remember that precisely 5 years ago, the same barrel of crude oil cost between $15 and $20. Only reason I remember this is that there are some small oil producers in the town my parents live in, and to operate the small wells, $20 was considered the break-even point. Also, rather than assume a vast conspiracy to make all of us pay more by reducing capacity of refineries, consider that it costs a lot to build and open a refinery; nobody will want it close to where they live and/or work; environmental regulations are so strict for new industrial buildings that it is very difficult to make new refineries; and, all the oil companies know that sometime in the near future, there will be so little oil left, which will be hard to get at, and will cost so much, that it does not justify the investment in more refineries.

2) Other. I don't own a car at school, so it does no impact me directly. But, price of gas is strongly correlated to price of transport, so I indirectly feel the costs via that.

3) Maybe. Democrats would probably propose to mandate via law a minimum MPG for (road) vehicles, to be phased in over a period of X years; Republicans would probably propose more tax cuts. I don't think either will sway the middle 60% of the US, since they know that neither proposal stands any chance of passing at this point.

4) $2.50-$3.00. Gas prices 5 years ago: $1.00/gallon, crude prices 5 years ago: $20/barrel. Gas prices now: $2.75/gallon (in Los Angeles), crude prices now: $71. If you scale it up, gas prices should actually be higher than $3, but part of the cost is overhead, so about in the $2.50-$3.00 range is right.