Bear Creek Ledger

August 2, 2007

One cause of high gas prices - refineries

When the media interviews someone filling their tank at a pump why is it the person never complains about one of the real culprits of the cost of a gallon of gas?  Enviromental groups driving regulations.  Congress, through the influence of enviro lobbying groups, has regulated ourselves out of the business of refining crude.  The same thing applies to drilling for oil domestically.  There’s plenty of crude in the US plus there’s coal gasification which could be utilized.  But nooooooo, they have to mandate ethanol which is currently causing the price of corn to go through the roof which will drive all level of food prices. That doesn’t even cover the inefficiencies on the whole ethanol product.  Of course this is at the same time we are throwing all sorts of farm subsidies for growing corn and building ethanol plants.  But the media continues to focus only on the evils of oil and gas energy.  They have helped to mislead the public into believing the propaganda distributed by the junk science socialists. 

I just saw the movie “The Power of Choice” which is a biography on the life of Dr.Milton Friedman.  This should be required viewing by every Congress person.  Maybe, just maybe, they will get it through their dim brains that price controls don’t work

From The Washington Times - Price at the pump driven by aging U.S. refineries

Attention American motorists: It is not ExxonMobil or Middle Eastern oil producers who are driving the price of gasoline you pay at the pump.

It is shortages of gas and other problems at aging refineries in your neighborhoods.

While that has been true all year, oil analysts say, it has never been more obvious than yesterday, when the price of premium crude oil briefly hit a record $78.77 in New York trading even as gas prices continued to fall at the pump.

snip….”The refineries have finally gotten their act together,” said Phil Flynn, an analyst at Alaron Trading Corp. “They’re back to normal, almost.” The Energy Information Administration reported yesterday that refineries are operating at 93.6 percent of capacity, the highest in more than a year.

American refineries are aging and prone to accidents and other problems that require extended periods offline to remedy. No new refineries have been built in 30 years, largely because Clean Air Act regulations make building new ones prohibitively expensive, oil analysts say

Attempts by Congress to encourage new refinery construction through tax breaks and other enticements in recent years failed to produce the desired results. Most new refineries are being built in China, the Middle East and other countries where regulations are less restrictive. That has led to an increase in imports of gasoline as well as oil.

snip….In the meantime, the outlook for new refineries in the United States — or even adding to the capacity of existing ones — remains poor, said Michael Canes, economic consultant at the Energy Policy Research Foundation.

“Consumers will benefit if additions to refining capacity keep pace with demand,” he said, but “from a refiner’s perspective, uncertainties abound.”

The new Democratic leadership, rather than offering tax incentives and other enticements to build new plants, is enacting tax increases and other penalties, he said. A Senate-passed bill would punish suppliers of gasoline with severe fines for any purported “price gouging” during an emergency such as a hurricane.

Also clouding the outlook for refiners are vows by President Bush and Democratic leaders to cut oil consumption by 20 percent through stricter fuel-efficiency requirement on cars and trucks and greater use of ethanol — developments that would take years to carry out but still raise questions about whether new gasoline refineries are needed in the long run, he said.

Technorati Tags: , , , , , , , , ,

3 Comments »

  1. […] It COULD happen here. Don’t assume it won’t happen in your neighborhood National Security and Homeland Security Presidential Directives NSPD-51 and HSPD-20 Now Cheney Chimes In: Ain’t No Superhighways PJB: The SWFs Are Coming The Lies of the Useless Numnuts The Military-Industrial Complex Obama might send troops into Pakistan One cause of high gas prices - refineries is “more democracy” the answer? The NEA, Doing All it Can to Make Your Children Consider Being Homosexuals Rudy Giuliani more libertarian than Ron Paul on Health Care Cohen Sticks By Medical Marijuana […]

    Pingback by Blue Collar Republican » Blog Archive » Blog Burst - August 2, 2007 — August 2, 2007 @ 8:07 am

  2. […] Bear Creek Ledger tells us the real reason gas prices are high. Enviromental groups driving regulations. Congress, through the influence of enviro lobbying groups, has regulated ourselves out of the business of refining crude. The same thing applies to drilling for oil domestically. There’s plenty of crude in the US plus there’s coal gasification which could be utilized. But nooooooo, they have to mandate ethanol which is currently causing the price of corn to go through the roof which will drive all level of food prices. […]

    Pingback by Music City Bloggers » Blog Archive » The Reason Gas Is High — August 2, 2007 @ 4:01 pm

  3. Demand $2 a Gallon Gas

    Oil was $120 a barrel on May 5, 2008.

    The cost of a barrel of synthetic fuel from coal is estimated to be $55, including the infrastructure and labor force necessary to operate plants.

    Germany fueled WWII with synfuel from coal. It is proven technology.

    America has 1/3rd of the coal on Earth and can eliminate dependence on foreign oil.

    Reducing America’s trade imbalance keeps money and jobs here in America.

    Every billion in trade deficit costs 13,000 American jobs. $400 billion for oil last year: you do the math.

    And we can stop sending billions to countries that sponsor terrorism.

    Synfuels are cleaner burning than gasoline and carbon sequestration can remove CO2.
    Visit http://governor.mt.gov/hottopics/faqsynthetic.asp

    Harness your anger at the pump. Call you’re US Senators and demand they break ground on America’s energy independence by encouraging an American synfuel industry in this decade.

    If you don’t raise your voice the oil companies, lobbyist and politicians will assume you are fat, dumb and happy and ready to pay even more.

    Comment by Michael Lewis — May 13, 2008 @ 3:25 pm

RSS feed for comments on this post. TrackBack URI

Leave a comment