Sound Familiar?

April 30th, 2004 | by Craig |

I hate to beat a dead horse, but I just couldn’t help it this time.

From this article:

The petroleum association says one factor crimping supply is state regulations that make it impractical for companies to open new refineries.

“We haven’t built one in 35 years,” Mangels said.

Valero [Largest US Independent Refiner] Chief Executive Bill Greehey predicted yesterday that refiners will not keep up with fuel demand this summer, sending prices higher. Rising gasoline prices lift crude-oil prices, boosting profits for producers and refiners. (Emphasis mine –ed.)

Your humble host:

I will, however, stand by my assertion that much of the [gasoline] price “problem” is one of production capacity.

  1. 4 Responses to “Sound Familiar?”

  2. By Randy on Apr 30, 2004 | Reply

    So how is the “rack price” determined? :)

  3. By Tony Rosen on Apr 30, 2004 | Reply

    that’s because you are THE man …

  4. By Todd in Bozeman on Apr 30, 2004 | Reply

    Purchasing a 50-100K Hummer which gets 9 mpg gets you a 20K tax break. Buying a hybrid which gets 65 mpg will get you a 2K tax break.

  5. By McGehee on Apr 30, 2004 | Reply

    I’m pretty sure most people who buy Hummers aren’t doing it for the tax break. They’re doing it for the substitute-penis effect.

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