Gas Price Surge Under Bush Follows Unchecked Increase in Refinery Mergers

Bloomberg News ^ | 5/17/04 | Jim Efstathiou Jr.

[machman]

May 17 (Bloomberg) -- President George W. Bush allowed an increase in oil refinery mergers to go unchecked since he took office and may have contributed to the highest gasoline prices in 20 years as the November election approaches.

The Bush administration approved 33 takeovers totaling $19.5 billion, on top of 21 deals worth $7.3 billion under President Bill Clinton, Bloomberg data shows. Reduced supplies were already pushing up gas prices in Clinton's term, according to a Federal Trade Commission study conducted after pump prices rose to more than $2 a gallon in Milwaukee and Chicago in 2000.

[tob2]

Hey, I'm on a fixed income and would love to be able to buy one of the hybrids on the market. But I have an idea. This awful digestive problem creates lots of natural gas. Maybe someone could harness the power of the fart to propel my vehicle! ROFL

[River_Wrangler]

You are correct, however the residual materials value normally carry a value at or near the original cost of feedstock. Real cost is a very complicated formulation partly due to thruput variances when modern refining techniques are utilized such as reforming and hydro-cracking which change the balance by increasing output quantities by altering the hydrocarbon chain.

[River_Wrangler]

Most correct!

[CyberCowboy777]

Mergers?



Blame the environ wackos and the Democrat puppets for unfettered regulation and the failure to pass an energy bill.


We new refineries, every current refinery could be independently owned and operated and we would still see a gas shortage.

OPEC needs to increase production to compensate for the huge growth in China and we need to increase refining capacity.

[Brilliant]

Would agree, but on the other hand, if Kerry is elected, it will be worse. Kerry will fight drilling tooth and nail. His solution will be to increase the tax on gas.

[CSM]

If you are truly a senior living on a "fixed income" that means you are retired. If the gas prices are affecting you so much, then just stop driving and stay at home. You can avoid the costs much easier than a non-retired person.

In addition, why wouldn't you have made investments when you were younger that accounted for all costs to increase with the same rate as inflation? Gas prices still have not risen to the levels that they should be if you take inflation into account.

Instead you post that the auto manufactures need to make vehicles with premium technology that are affordable to low or fixed income folks. Do you also want the government to grant seniors a "fuel subsidy", much like the drug subsidy?

[Brilliant]

It's gone up a lot more than 6-7 bucks in the last couple of years. Of course, the short term increase you are talking about is due to a lot of things, ranging from an increase in oil prices, to lack of refinery capacity, to higher wages, etc. I doubt that you can ID any mergers that have occurred in the last few weeks that might explain it.

[Truth666]

The simple explanation is not found above - understand what's ahead :
http://www.freerepublic.com/focus/f-news/1131648/posts

[GailA]

It's the GREEN's fault Henry Lamb

[Indie]

When a $5 bill won't fill my motorcycle anymore, it's bad.

[KAUAIBOUND]

Count your blessings - I filled up yesterday on the north shore of Kauai and spent nearly $40 at a price of $2.49 per gallon for regular.

[douglas1]

HERE in RENO GAS is $2.29 per gallon we always get hit, I sure would like to know why.

[adam_az]

Funny, I'd think that mergers would reduce administrative costs and increase efficiency?

Crude oil prices account for almost half of the cost of gasoline, the Energy Department says. Refining, distribution and marketing costs make up one fourth of the price and taxes account for the rest.

In other words, gas taxes are mostly to blame.... Gas taxes Kerry voted 11 times to increase.

[Wolfstar]

Here in the Los Angeles area, the cheapest I've been able to find regular gas was at an Arco station in Torrance. Price: $2.22 per gallon up five cents from last week. These days, I'm topping off my tank — not letting it get below half a tank. So I bought $10 on Saturday, which got me a quarter of tank's worth. You folks in the rest of the country who are still paying under $2 per gallon don't know how good you have it.

[John Robinson]

the auto manufacturers need to use improved technology so that cars can run efficiently... vehicles and energy sources [need] to be affordable

Regardless, you're going to pay. When the technology breaks or needs maintenance, it's going to be much more expensive to fix or replace. It's going to be a nightmare for low-incoming families.

And forget about do-it-yourself auto-repair. Not without a lab with hundreds of thousands of dollars worth of electronic diagnostics equipment, thousands of pages of documentation and hundreds of hours of training, expensive specialized single-purpose tools, etc.

[John Robinson]

low-income.

"I have already previewed or do not wish to preview this composition" -- my worst idea ever.

[snopercod]

I'm sure the fact that no refineries have been built in the U.S. since Nixon was president has nothing to do with the shortage...

[kittymyrib]

The last new refinery was built in 1973, that's 31 years and many millions of SUVs ago.

[tob2]

Yup.

[tob2]

Not for long. It's past $2 for premium and regular is not too far behind.