Democrats Demand Answers From Oil Companies [Rep. Dennis Kucinich, has sent letters to seven major]

CNS News ^

[The Great RJ]

Let Congress impose price controls and then watch as we all have to stand in line to get gas due to the shortages. Is idiocy a requirement to be a Democratic member of Congress?

[dblshot]

Stricter environmental laws, property taxes on stations on top of pump taxes, special gasoline formulations, etc. etc.

[rocksblues]

According to that chart ie $0.60 a gallon and all the extra refining that must be done to sell gasoline in CA, they are actually $0.10 cents a gallon better off than the rest of the country.

[avacado]

You lost me on that 10 cents?

[rocksblues]

$0.50 cents more a gallon in CA. $0.60 cents a gallon in taxes.

[SAJ]

Yes. However, don't be looking for any great expansion in refining capacity to come on line any time soon.

Historically, say from the 1970s through the 1990s, refining was a lousy business; 3-4% margins, IF you were lucky. There was simply too much refining capacity available. Reasonably enough, companies closed older refineries.

But, not so reasonably, they also refused to sell these closed refineries to anyone who had the intention of operating them. Net of all BS, there has been a deliberate and (so far) successful attempt to squeeze refining capacity in order to improve margins.

It's very difficult for me to see the ''reasoning'' behind this, regarding the refiners' thinking. By keeping refining capacity tight, they're just begging for another round of idiotic regulation. This can't be to ANYONE'S good, and they have to know this.

So, colour me puzzled. I suppose they're thinking that they can buy off the political wolves for, what?!?, another decade or so, therefore who cares about today? If this is in fact the case, I believe they're whistling past the graveyard. As we all know, politicians just love to regulate industries that they don't have the first clue about, energy being first on the list.

FReegards to you!

[SAJ]

Is there anyone in the Democrat party that took Thermo 101?

Wrong question.

Is there anyone in the Democrat party who passed Thermo 101, and Econ 102-103 as well?

This question is, of course, entirely rhetorical.

;^)

[bboop]

hahaha, he SAID that? Gasoline expands when it gets warm, and you get less for more $$?? hahahah. Great Scientists there in the Democratic Party. I could not read this schlock.

I hope he mentions that the STUPID voters in California VOTED to raise gas taxes as a punishment for NOT being a third-world country.

IDIOTS!

[SAJ]

Agree fully. Please note that I did not use the formulation, ''a liberal Democrat from Ohio''. That bit of willful, egregious misdescription belongs entirely to the author of the article.

;^)

[goodnesswins]

My husband also said that there are refiners now being built overseas? Know anything about that?

[SAJ]

A little. China and India, certainly, are expanding capacity. I'm told the Russians are planning a huge add-on at Chelyabinsk (if I recall correctly, might be a different facility). Singapore and Malaysia, too, I believe. Conversely, Venezuela, which needs capacity, not only is not building at all, but also existing facilities are falling apart. Chavez is arguably one of the stupidest would-be oil operators in the history of the planet.

Worldwide, refining capacity is rising, not a doubt of it. The question is -- and I'm not good enough to answer it -- whether or not the new sitings are in the ''right'' places, i.e. locations that minimise transport differentials and are (relatively) close to the end mkts they serve.

I suppose, as ever, that we shall see shortly.

;^)

[colonialhk]

Drill off California and Florida and things will improve

[Wuli]

What Rep. Kucinich demonstrates most effectively is that it does not matter what the oil companies tell him

- about seasonal refinery operations, about regional differences in product blends, about regional differences in distribution networks and their capabilities, about regional differences in demand or regional differences in changes in demand -

he won’t understand any of it anyway.

They could just as well talk to a brick wall for all the good it would do.

Kucinich is a “fundamentalist” like Dan Rather. His cherished beliefs will always outweigh any facts.

Of course his leftist political-religion and its abhorrence of markets does not help the situation either.

[Cletus.D.Yokel]

I think SAJ is more correct on the “lernin” of the Dumbasscrats.

Thermal differences and compensations are priced into the material at the wholesale level by commerce rules.

Remember it’s the wholesalers that SET THE PUMP PRICES WE PAY.

[RightWhale]

What about ANWR, site of several recent earthquakes?

[alloysteel]

It’s simple - California is in the position of importing much of their energy already, and this only assures they will import even more. Further limitations are applied in refusing to simplify the supply infrastructure, in not allowing adequate port facilities or refinery and storage, or sharply restricting placement of retail outlets, reducing competition in the process.

Plus the fees and taxes. Talk about strangling growth without any compensatory benefits.

[goodnesswins]

Thanks.

[thackney]

RightWhale was referring to this post:

http://www.freerepublic.com/focus/f-news/1815058/posts?page=23#23

[thackney]

1. What is your strategic plan to raise the supply of gasoline for the onset of the peak driving season, which is only weeks away?

Switch from making fuel oil used in heating to making more gasoline used for driving, just like every other year in the past has done.

U.S. Weekly Finished Motor Gasoline Production

You might want to become aware of how small a swing in gasoline useage is during the summer.

U.S. Finished Motor Gasoline Product Supplied