Cowcatcher wrote:
Yes we don't have enough refining capacity. No it is not NIMBY it is the oil companies who closed their refineries to drive up prices. The FOX folks and others will tell you that no new refineries have been built since the early 70's but they conveniently leave out the fact that the oil industry closed 50 refineries in the last dozen years to reduce demand and drive up prices.
Well, well, at least I'm not the only person that remembers that! I can remember a few years back when they showed the actual e-mails between oil company execs on TV, discussing in plain English how best to go about buying up the independent refineries and shut them down to keep supply tight and prices up.
They way overbuilt refinery capacity in the 70's, according to the GAO (yes, I'll admit it, I actually watch C-SPAN every now and then). 2 or 3 successive oil crunches, plus CAFE standards and what conservation measures we did adopt kicking in, kept demand far below what they expected for many years. Even with shutting down 50 refineries, it took until last year and the double whammy of two hurricanes to finally hit the upper limit on refining capacity.
Also according to the GAO, when they investigated why these 50 refineries were shut down, there were no environmental or other concerns that forced their closure. In their words, the only logical reason why they were closed was a conscious business decision to reduce capacity, tighten supply, and drive up prices.
In other words, even our own government admits this was a premeditated business decision to give us the shaft.
Another tidbit from the GAO report - allowing for production costs, the current price of a barrel of oil, and a decent 10% profit, even with $70 a barrel oil the average price of a gallon of gas should be $2.40, not 3 bucks and up.
We're already giving the oil industry somewhere around 30 billion a year in tax credits and government subsidies (your tax dollars at work!

). And now, after raking in record profits, they're pleading poverty and claiming they only clear 4 or 5 percent profit, and that if we want them to reopen existing or build new refineries, that we need to give them even more tax credits and subsidies.
And some people wonder why one of my vehicles runs on batteries!
