Wake Up Call: Gas Prices and Refineries

Thursday, September 08, 2005

The recent spike in gas prices across the nation in the wake of hurricane Katrina has recently been blamed on a shortage of refineries in America. The oil companies have gone so far as to even blame the shortage of refineries on environmental regulations. This may seem like a bit much, but it is as simple as supply and demand. The less oil that is refined into gas the more expensive gas prices are.

Hurricane Katrina did in fact slow the refining process due to the fact that there were offshore refineries in the Gulf of Mexico; this much is true. What has been brought to light recently, however, is why there are so few refineries in the United States in the first place. Contrary to what the oil companies are telling us, it is not environmental regulations that limit the amount of refineries. It is the oil companies themselves who have closed down and limited the amount of refineries in the United States. Why would they do that, you ask? The answer is as simple as supply and demand: less refineries means less gas. Less gas means higher prices. Higher prices means more money for the oil companies.

The Foundation for Taxpayer and Consumer Rights yesterday exposed inter-office memos from the big three American oil companies Mobil, Chevron and Texaco in their press release: "Internal Memos Show Oil Companies Intentionally Limited Refining Capacity To Drive Up Gasoline Prices". These memos demonstrate how the oil companies closed down refining capacity, and opposed the opening of more oil refineries in the U.S.. All this in an effort to make more money at the expense of the American people.

Wake up America! Capitalism does not care about you or me, just the bottom line. We are seeing this now in the wake of hurricane Katrina. We are all expendable. The only thing that matters is the almighty dollar. It's time we stand up to the oil companies. We do have the power because they need our money.


Anonymous said...

Having worked 35 years for big oil in the refining side of their business I can tell you you are full of BS. Anyone stupid enough to believe the enviornmentl nazies wouldn't fight along side their lying liberal democrats to stop refineries from being built anywgere in the USA shouldn't be allowed to have a computer much less use one.

jmcmaster said...

Nice point with your facts, or I mean hateful speech. Maybe you could enlighten me about the refining business. I think your the type of greedy capitalist I am trying to expose here, thanks.

Jon Blaze said...

According to your own words, anonymous, the "road block" for refinery construction in US are the Democrats and tree huggers. That I agree with...maybe 7 years ago. Since 2002, when the Republicans gained majority power in the senate, Republicans have had almost unprecedented clout. If there was ever a time to build it would have been NOW. Where is it?? If not now then never. It's obvious to anyone that less refined crude equates to higher earnings for oil slingers due to lower supply and obvious worldy demand. Earnings earnings earnings. Anyone who doesn't know that should stay anonymous.

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