Black Gold

Black+Gold

Félix Moisan, Journalist, Editor

Quebec’s drivers are now concerned about this new high in the price of oil that occurred this October.

The price of one litre of gas has been set to 1,79$ today, reversing a long decline of the price after being at its all-time high of 2,24$ this summer.

The people are getting scared the price is going to go up even more. Citizen Lise Desrosiers said, “I am sure many people do not have the money to afford gas right now which is a terrifying reality,”.

The oil price is probably in its highing slope since OPEC+ agreed to reduce its oil production by around 2 million barrels a day. This is the first time since Covid that they proposed reducing oil targets. We are already seeing the effects of this student reduction after the price of one litre is now set to 1.79$, going up by 11% since the OPEC+ target reduction.

President Joe Biden tried and is still trying to get Saudi Arabia and all of OPEC to increase their oil production saying that the giant producers are not going to pump more so people can have gasoline to get to work is not right.

Inflation is also a factor most people think is possible. Inflation is having repercussions on various things like food, electronics and petrol is no exception. One litre of oil is around 1.65 this month, up by 0.60 over the past 10 years. This price increase is having people change their everyday lifestyle to still be able to get to work using their cars.

“People having to restrain themself from getting nice clothes and good food to be able to afford oil is not something we should accept,” said Mme.Desrosiers.

Russian oil production is ranked third in the world right after Saudi Arabia that are being best by the U.S. If the second and third biggest oil producers are not going to pump more, the price of gas will keep going up since the big petrol companies are not going to be able to fill the demands.

The Russia-Ukrain war is also a factor in this height of the price. This bomb of a news was revealed to us on February 24 2022. This caused petrol to rise above 100$ for one barrel before being at its highest price of 120$ a barrel as Canada and all of NATO imposed sanctions on Russia.

The giant oil companies such as Shell and BP that had energy contracts with Russia, when NATO announced a ban on importing Russia’s oil and products, increased their price by 12%.

After all the problems with oil production, U.S oil companies aren’t in a hurry to expand their oil production. The U.S oil production has been set to 11.5 million oil barrels a day according to the U.S Energy Information Agency. As it is more than 200 000 barrels than what it was last year, it’s about half a million barrels less than what it was back in 2019.

Solution

One solution that could counter the rise of prices would be to find a sustainable transportation system that does not depend on oil. Quebec has already found a solution that does not make everyone happy. If you live in Quebec you have surely heard of it. The Tramway.

The Tramway is a 100% electric vehicle that could be used by thousands of people a day. This would be a great substitute for buses while being 100% electric.