[Vision2020] The Price of Gas

[Ron Force]

Last spring the California State Senate invesigated the major oil companies
buying up and closing idependent refineries.  Conspiracies are hard to prove
without an inside whistleblower.  Here's an excerpt from the May 25,2004 San
Francisco Chronicle. Senator Joseph Dunn was the committee chair.

" Seven oil companies control more than 90 percent of the state's market, he
says, noting five power producers and trading giant Enron dominated
electricity.

Tightening supply is good for business, and Dunn already has gathered a
collection of previously uncovered memos from several oil companies,
including Chevron and Texaco, in which the companies discuss the need to
reduce supply in the West to boost profit margins. California politicians
from Washington to Sacramento are questioning a decision by Shell to shutter
a Bakersfield refinery this year that is likely to further up gas prices.

"It's deja vu all over again," said Dunn, who believes the big players in
the industry have been on a deliberate path during the last few decades to
drive out independent competitors, ensure a tight supply, and ratchet up
prices at consumers' expense."

Later that year, under pressure from an investigation by the FTC, Shell sold
a closed refinery in Bakersfield to Flying J of Utah.

**********************************************
Ron Force          Moscow ID USA
rforce at moscow.com
**********************************************

-----Original Message-----
From: vision2020-bounces at moscow.com
[mailto:vision2020-bounces at moscow.com]On Behalf Of Bill London
Sent: Thursday, April 14, 2005 6:08 PM
To: B.C. Strand; vision2020 at moscow.com
Subject: Re: [Vision2020] The Price of Gas


B-
could you speculate about the lack of refinery facilities?
given the huge profits that oil companies reaped of late, it could not be
caused by lack of capital.  is it lack of planning?  a goal of forcing the
US government to soften regulations?  a goal of gaining favorable tax status
from US Government for investment in refineries?
BL


----- Original Message -----
From: "B.C. Strand" <Bill at strand.bz>
To: <vision2020 at moscow.com>
Sent: Wednesday, April 13, 2005 11:18 PM
Subject: [Vision2020] The Price of Gas


> Mr. Arnold and Mr Harkin have been arguing about the price of oil and
> gas in respect to overall cost of living. The easist way to make this
> comparison is to go out tot to a web site such as the St Louis Federal
> Reserve and download the historical data for the Consumer Price Index
> (CPI) for energy as well as the CPI for all goods and services (minus
> energy). The CPIs take into account inflation as well as relative use of
> different goods and services.
>
> A quick comparison shows that energy costs were indeed significantly
> higher in the late 70s then they are at the present time.
>
> As for the reason for the reason for higher gas prices - it is not crude
> oil availability. Oil inventory levels in the US are at record high
> levels (both in the stategic reserve as well as active inventories). It
> is the potential shortage of REFINED products (gas, heating oil, jet
> fuel, etc...) that have led to the high prices over the last year. Where
> 30 years ago US refineries were running 80% of the time, last year they
> were running at 95% levels (and were still behind the demand curve). And
> there is very little new refining capacity planned in the US. In
> addition, the specialized summer blends of states such as California and
> New York mean that gas cannot be imported (they have to import the blend
> components).
>
> Bill Strand
>
>
>
>
>
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