US Refiners: No Quick Fix to High Gasoline Costs

[Dover]

Wed May 12, 2004 01:55 PM ET

WASHINGTON (Reuters) - U.S. oil refiners have no quick fix to ease record-high gasoline prices during this summer's peak driving season, the head of an industry trade group told Congress on Wednesday.

The Energy Department is predicting that the national pump price will peak this June at $2.03 a gallon, and average $1.94 for April through September.

"In the short term, there are no 'silver bullets' to alleviate the high costs of gasoline for consumers this summer," said Bob Slaughter, president of the National Petrochemical and Refiners Association.

Testifying at a Senate committee hearing on the gasoline market, Slaughter said rising prices at the pumps are from high crude oil costs and strong motor fuel demand resulting from an improving U.S. economy. Crude oil accounts for almost half the price of gasoline.

..snip..

Slaughter downplayed calls by some lawmakers and consumer groups for investigations into whether oil companies are manipulating gasoline markets and illegally causing pump prices to rise.

"More than two dozen federal and state investigations over the last several decades have found no evidence of wrongdoing or illegal activity on the part of the industry," he said....Cont'd >

http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=5122205

[ClintonTyree]

1. There's never................

any "wrongdoing", yet petro companies are posting record earnings. Last year they had record earnings, and this years profits are 33% more than last year. It must be all of those cost cutting measures they've employed! :eyes:

[Don_G]

3. Exactly

Exxon/Mobile earned 21.5 Billion on 213 Billion in sales. Texaco/Chevron is also up there. http://moneycentral.msn.com/content/invest/extra/P78771.asp

[dusty64]

7. Yeah those

record profits sure are interesting.

[ze_dscherman]

2. Another lie: "resulting from an improving U.S. economy"

Everyone else cites the unexpected demand of the Asian economies (especially China) for fuel as a main reason for the shortage of oil.

[booksenkatz]

4. Oil companies are suffering!

It's not their fault!
/sarcasm

I overheard a Freeper yesterday declare that it's the "goddamn sheiks" that are causing our gasoline prices to skyrocket. Yeah, the sheiks, that's the ticket.
:eyes:

[Corgigal]

5. I guess we all need to forget

what Bob Woodward book tells us all about how the Saudi's are raising oil prices for the summer and then drop it right before the election so they can help Bush. I mean the gig is up and it still happens right in front of our faces and the news media pretends that the above information wasn't transmitted to us all. I live in never never land.

[blueknight]

6. it makes me sick!

gas is $2.00 a gallon, milk is $3.00 a gallon. the stock market is dead,health care is ridiculous,yet people everywhere are ready to vote for these clowns again! people should have to take a frigging test before they are allowed to vote!

[izzie]

8. I think it works like the light co. Use less so rates go up

I never could figure that out but they started that about 10 years ago. The plan is so much profit. Trouble is most of profits go to CEO'sI just use less of all oil stuff now. I bet oil stocks are good, but I have not looked.

[DiverDave]

9. Just like printing their own money

They pay a small percentage to the fascists and they start the ol printing presses.
We need to nationalize the oil industry in this country.

[soleft]

10. I heard on the Air America

That the oil industry is blaming high prices on environmental regulations.

[jmcgowanjm]

11. Unfortunately, the fact of the matter is blunt.

There is simply no long term solution, which is
currently foreseeable, which can provide anything
even approaching the current levels of energy to sustain
and please the population. The only long term solution is to
curb our energy usage - and that doesn't just mean using
energy efficient light bulbs and taking the bus to
work.

Energy is required in the production of all manufactured
goods. In order to reduce our energy consumption, it follows
that we consume less products. But of course, such a course
of action is in direct conflict with our economic models
of compound growth and full employment. More specifically,
a reduction in energy consumption may bring about the
collapse of all industrial society

http://www.jakeg.co.uk/dissertation/#chapter6

Saudiis are pumping at capacity.
Ghawar is pumping 60% water now.

There were no world discoveries in 2003.

ShellRD cut it's reserves in Oman. Oman didn't.

It was predicted $2 gas by Memorial Day.
Also predicted was $3 gas by Labor Day.