All Gawds Creatures said...

Big Oil attacked over record gas prices
Critics tell House panel that mismanagement, lack of competition are behind record prices; call for gas reserve, possible oil company breakup.

NEW YORK (CNNMoney.com) -- Big Oil went on the defensive Wednesday, getting grilled before a House panel and denying accusations that mismanagement and a lack of competition are the reasons behind this spring's record gasoline prices.

But the American Petroleum Institute, an oil industry group, in an e-mail sent out prior to the hearing, said nearly 30 state or federal investigation over the past 30 years have failed to turn up any evidence of price fixing

Felmy said in a phone interview that whenever the industry tries to add refining capacity, it faces opposition from surrounding communities. Moreover, Felmy questioned why the industry would make expensive refining expansions when President Bush is calling for a 20 percent reduction in gasoline use by 2017. API also produced numbers showing the amount of gasoline being produced was increasing. "I think the refining industry is doing all it can," said Felmy.

Felmy said several other contingencies are contributing to the high gas prices. Those include higher crude prices since the start of the year, attributed to tensions with Iran and violence in Nigeria; a decline in gasoline imports because of a strike in Europe; strong demand in the United States and higher prices for ethanol, which is blended with gasoline to make it cleaner burning.

"We recognize that consumers are frustrated by these prices," said Felmy. "But price controls could make them worse."

Duh.

It's easy out there for a pimp. Record Oil Company Profits