Posted on 03/13/2008 5:25:14 PM PDT by Kaslin
Energy Policy: When America's biggest oil refiner contemplates putting almost a third of its refineries on the market, Congress should sit up and take notice. The business climate it has created is hurting our economy.
Valero will probably sell three of its 17 refineries this year and maybe two more later to focus on its core operations amid what CEO Bill Klesse acknowledged on Tuesday is a weak economy.
But maybe that's because the environment for the energy business in the U.S. has turned downright hostile.
Upstream, oil drilling is off-limits, crimping supply and driving prices ever higher. Downstream, refiners are hit by not only high energy prices, but also bureaucratic regulations, environmental lobbies and special interests that make moving to Asia, where economic growth is still valued, more attractive.
The sorry fact that no new refinery has been built in America since 1983 has been cited so many times that we would have thought someone in Washington would have done something about it by now. But no — it just keeps getting worse.
(Excerpt) Read more at ibdeditorials.com ...
Ethanol is the government’s favorite child. Each gallon of ethanol is supported with a $0.50 tax credit and $0.51 tariff. Our ethanol program would make an old Soviet Commissar of Agriculture proud.
That's because ethanol is Good and oil is Bad.
Valero plans $2.4 billion Port Arthur refinery expansion
http://www.mysanantonio.com/business/Valero/stories/MYSA022808.valero.EN.7dfef86.html
02/28/2008
David Hendricks: Valero’s strategy aids bottom line
http://www.mysanantonio.com/business/Valero/stories/MYSA030108.01D.hendricks.2e111e7.html
02/29/2008
You’d think that our oil companies would have long since realized that a generous supply of oil and it’s refined products keeps the consumers happy.
And that when that doesn’t happen, the consumers get cranky. Cranky consumers who then complain to Congress.
Furthermore, you’d also think that our oil companies would realize that ANY time Congress gets involved in ANYTHING, they royally screw it up.
But no, they don’t ever connect the dots. Which is why we’ve had Congress royally screw up our oil industry repeatedly over time.
If I ran Valero, I really wouldn’t want government interference - so I’d do whatever necessary to keep them out.
Course, that’d mean that I’d increase the company’s oil production and refining capabilities to slightly exceed demand... but hey, what do I know?
It’s not like I’ve got a PhD in business or economics or nuthin’. So I must be wrong.
Yep, Valero is doing a much better job than I ever could! Selling off capabilities, drawing government attention... wooo, I’d never have thought to try that.
Silly me.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.