Don't Blame Prices On Environmentalists

[underpants]

Editor, Times-Dispatch: The oft-cited excuse for rising gas prices is the lack of new refineries in the U.S. This is echoed by people who should know better.
Blaming this on radical environmentalists is naive (sic). If the American Petroleum Institute wanted to initiate a lobbying effort to build a refinery in the middle of the James River, it would -- and it would get it, too. Big Oil doesn't bow to environmental pressures; in fact, it bows to no one, let alone the Sierra Club.

The important factor here is the companies' margin on refining and not over-investing in capacity; they are dealing with a finite supply, you know. There are currently half as many oil refineries in the U.S. as there were in 1981 but refining capacity has only decreased 10 percent. Google "Chevron memo refineries" and read for yourself (search for Texaco and Mobil memos, too). Big Oil has control over supply primarily through control of refining.

Oil companies enjoy the rare ability these days of price control and they apparently have willing followers to chant their message for them. Would you make a U-turn to get a $2.50 gallon of gas? Would you have a year ago?

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[NastyDiaper]

1. Don't blame firefighters for the fire.