Wednesday, May 30, 2007

Don't Blame Oil Companies Says LA Times Editorial

Did you read this surprising Los Angeles Times May 25, 2007 EDITORIAL
Don't blame oil companies This summer, it's time to lay blame for high gas prices on ... us.

"despite the fact that dozens of probes over the last 20 years have turned up no clear evidence of market manipulation by oil companies"

"Moreover, government efforts to reduce our reliance on foreign oil and cut greenhouse-gas emissions, both highly desirable goals, are probably contributing to the problem. Gas supplies are tight because the U.S. lacks refining capacity, and every time a refinery shuts down for maintenance or because of an accident, prices rise. Consumer advocates claim refiners are artificially restricting supply by refusing to expand. Actually, they're just making logical business decisions. President Bush has called for the production of 35 billion gallons a year of alternative fuels, mostly ethanol, by 2017, and Congress is considering even more ambitious bills. With alternatives replacing gasoline, it would be crazy to spend hundreds of millions building a new gasoline refinery that might not be needed by the time it's finished."


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