Petroleum Industry Christmas Wishlist Conservative pundits are quick to point out that no "
new refineries have been built since 1976", and even quicker to blame "environmentalists". But the facts just don't support that. Refiners have chosen the environment that they do business in, and in some cases have willingly contributed to it. (
Plenty of data here.) Here's why:
- The government has allowed the industry to merge, consolidate, and restrict refining capacity, thus impacting pricing, supply, and demand.
- The quest for profits has caused the need to run extremely lean supplies (ie. no stockpiles of crude - it arrives when you need it, not before) and has resulted in susceptability to wild volatility in prices, but has allowed refiners to operate at very high efficiency but with no margin of excess capacity for temporary shortages, disasters, etc.
- Oil refiners trimmed back capacity after the Oil Crash of the early 1980s and have been unwilling to reinvest in new technologies unless environmental restrictions and local fuel cleanliness mandates are reduced.
As one would expect, Bush's solutions nicely match up with the wishlists of
OPEC and
US refiners, who in the past few decades have largely undone the breakup of Standard Oil (
via) via mergers and joint ventures. Representative
Joe Barton, (R-TX), Chairperson of the
Energy and Commerce Committee, incidentally up for reelection and
well funded, by "
the industry" through various
Political Action Committees, has released a draft of the predictably named (to be
found here when released)
Gasoline for America's Security Act of 2005 (committee discusion and
webcast are scheduled for 9/28 at 8 am.) Given that new refineries are years away, there is still no solution for current prices or the (90%?)
increase in prices since January of 2001.
posted by rzklkng
on Sep 27, 2005 -
22 comments
Sure, we all know the story about how Detroit developed, and then kept under wraps, a 100mpg carburetor is
false. However, affordable 80mpg family sedans
are real: behold the
Supercar! They are the results of a nearly decade-long partnership between
The Big Three and the Clinton administration. However the program was quietly shelved last June, the victim of the Bush administration, and corporate backpedaling. Read the whole sordid tale
here.
[use username/password for login] In the meantime, you'll have to settle for one of
these.
posted by thewittyname
on Dec 13, 2002 -
22 comments
If you're on the road this summer and on a budget, you might want to check out
Gas Price Watch. Volunteers report on gas prices in their area around the country and in Canada.
posted by aflakete
on Jun 1, 2001 -
4 comments
