Democrats slam Big Oil over $3 gasoline prices

Reuters ^

[Sub-Driver]

Democrats slam Big Oil over $3 gasoline prices Tue May 8, 2007 4:46PM EDT

By Tom Doggett

WASHINGTON (Reuters) - The U.S. Senate's top Democrat on Tuesday accused big oil companies of shutting down refineries temporarily to raise gasoline prices and rake in"obscene profits."

Gasoline prices have topped $3 a gallon at service stations across the country because several oil refineries are offline due to maintenance or accidents, reducing gasoline production and making fuel supplies tight.

"It's outrageous ...Isn't it interesting every year about this time, a refinery goes down for repairs," said Senate Democratic Leader Harry Reid of Nevada.

"Is that coincidental? Or is it part of a plan that these multinational, huge companies who are making obscene profits in the tens of billions of dollars -- is this part of their game to keep the profits going?" Reid said.

House Speaker Nancy Pelosi on Tuesday announced seven congressional hearings in coming weeks on soaring energy prices and plans to put together a proposed package of energy bills by July 4 to address the issue.

"With Memorial Day travel and the start of summer driving only a few weeks away, drivers are paying a heavy price for the Bush administration's failure to enact a comprehensive energy strategy," said Pelosi.

"Years of Bush administration policies that have favored Big Oil over the consumers have resulted in record dependence on foreign oil," the California Democrat added.

[reagan_fanatic]

From the website:
The annual transition to “summer blend” gasoline required by EPA has begun and this warm-weather gasoline is more expensive to produce. The switchover also requires temporary production reductions at refineries.

Going to a single octane gas and getting away from this multi-grade nonsense would help considerably.

[2 Kool 2 Be 4-Gotten]

They have to drain the pipes and tanks to get ready for the summer blend you politicians mandate at frequent intervals. It isn’t just one refinery. It’s all of them.

---

Thank you brother, can I get an Amen?

Why is this not screamed from the mountainsides? It’s a politician-made shortage, not a real one! The boutique fuels have got to be the reason we see this every year. The drive-by’s always talk about the “summer driving season” when in reality it’s the “boneheaded enviro-whacko mandated boutique fuel refining season”!

Does anyone really drive all that much more in the summer than in the winter? I’m sure somewheres out there Ward and June are piling the kids into the family station wagon to go see Cousin Eddie out in Kansas or wherever, but for the most part we drive to work, we drive home, we go to the grocery store and we do this no matter what month it is!

Sheeesh.

[Ben Mugged]

Most states require at least two formulations, one for summer and one for winter. The refineries have to be taken down to prepare for the reformulation switchover and that is a good time to perform maintenance. The law of supply and demand then takes over.

[george76]

and no new nuclear plants for electrical energy.

How are they going to drive their pc electrical cars ?

[mewzilla]

From last week...

U.S. Gasoline Stockpiles Shrink

[thackney]

Isn’t it about 50 cents per gallon that the oil companies make? Where does that other $2.50 go, Harry?

50¢?? Not that high. Typical oil company profits are ~10%.

[AD from SpringBay]

Maybe the senator will tell the ecos to stuff it and ‘allow’ big oil to build more refineries.

[mewzilla]

How are they going to drive their pc electrical cars ?

Snort. Actually, I don't see the pc types practicing what they preach. They just expect the rest of us to do it. And they won't give a fig if we can't.

[RightWhale]

It’s a politician-made shortage, not a real one!

It's not even a shortage. Is there one gasoline service station that has run out of gasoline in the past month, aside from those that are so poorly managed they just forgot to call for a delivery?

[mewzilla]

Maybe the senator will tell the ecos to stuff it and ‘allow’ big oil to build more refineries.

Check out my link in #16 and you can see just how well that's going....

NOT.

:(

[Road Warrior ‘04]

It' called Repair and Maintenance, you dumba$$...

Mr. Reid, pwer plants do the same thing, maybe twice a year, in addition to their standard MRO. Get a clue!

[thackney]

And they held up starting to build the refinery for years before.

Arizona refinery permit took seven years, Senate told
http://www.tucsoncitizen.com/daily/business/19103.php

[Ghost of Philip Marlowe]

Hey, Dhims,

if you’re so concerned, why don’t you suggest rolling back all federal and state gas taxes?

(crickets)

[USFRIENDINVICTORIA]

The very people who want to: reduce oil consumption; impose carbon taxes; ban drilling offshore, or in “environmentally sensitive” areas (AKA everywhere); prevent the construction of new refineries, or the expansion of existing refineries — these very people are blaming big oil for price increases. (We have the identical situation in Canada — except that “those people” also want to shut down the tar sands — in the U.S., they content themselves with preventing any attempt to exploit the oil shales).

[conservative in nyc]

State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry (Tax Foundation, October 2005)

[2 Kool 2 Be 4-Gotten]

Shortage only in the sense of a slight tip in the supply/demand balance necessitating higher prices to restore equilibrium, not in the sense of gas lines stretching 3 blocks down the street. But it probably wouldn’t take an awful lot to see the latter. If Reid and company get the idea to put in price controls, or windfall taxes etc. etc. - watch out? It will be like the good old ‘70s all over again. You’ll pay by $$ or you’ll pay by waiting in line. But pay you will!

[Let's Roll]

We need to be more specific - for the fools who only watch mainstream tv news.

DEMOCRATS and their enviro-whacko masters are the ones who refuse to allow the building of enough refineries in this country to keep up with demand. This creates an UN-necessary shortage and drives up costs.

Repeat as necessary and it must be VERY necessary.

[Steve_Seattle]

"Big Oil watched Al Gore’s movie and became alarmed about Global Warming so they raised the prices on gas so people would drive less. :)"

Although you are joking, you do touch on a point that deserves mention. The environmental lobby DOES advocate much higher taxes on gasoline - to push the price to European levels - to promote conservation. So when they complain about high prices, they are talking out of both sides of their mouth. They WANT higher prices, but they want it in the form of draconian taxes.

[Marathoner]

these multinational, huge companies who are making obscene profits in the tens of billions of dollars -- is this part of their game to keep the profits going?" Reid said.

I find it interesting that these clowns never talk about actual profit MARGINS, just "obscene profits". Just another attempt to snow the sheeple (far too often sucessful, unfortunately).

[MrB]

They might, or might not, be “economic illiterates” -

the main thing is, they know that the majority of their constituencies ARE econignoramouses.