Evidence Shows Shell to Demolish Profitable Refinery, Drive Up Gas Prices

[jackschmittusa]

link

SANTA MONICA, Calif., April 6 /U.S. Newswire/ -- The Foundation for Taxpayer and Consumer Rights today released internal Shell documents showing the oil refiner is set to close and demolish its Bakersfield refinery despite the fact the site had the biggest refinery margins, or profits per gallon, of any Shell refinery in the nation as of yesterday.

FTCR also wrote President Bush and US Senator John Kerry to ask both candidates to support a national moratorium on refinery closures throughout the United States, stating that the recent run up at the pump "has little to do with OPEC but is a result of the deliberate restriction of supply by the highly consolidated domestic refining industry." The letter can be viewed at http://www.consumerwatchdog.org/utilities/fs/fs004155.php3[/Q

I would think the government would have some interest in this as a consumer protection or market manipulation issue of some sort. I'm not yet sure to what extent they should become involved or what corrective measures might be appropriate, but I doubt that Bush is the guy to act against any oil company interests.

 

[Crimson]

Originally posted by: jackschmittusa
link

SANTA MONICA, Calif., April 6 /U.S. Newswire/ -- The Foundation for Taxpayer and Consumer Rights today released internal Shell documents showing the oil refiner is set to close and demolish its Bakersfield refinery despite the fact the site had the biggest refinery margins, or profits per gallon, of any Shell refinery in the nation as of yesterday.

FTCR also wrote President Bush and US Senator John Kerry to ask both candidates to support a national moratorium on refinery closures throughout the United States, stating that the recent run up at the pump "has little to do with OPEC but is a result of the deliberate restriction of supply by the highly consolidated domestic refining industry." The letter can be viewed at </blockquote>"><a target=_blank class=ftalternatingbarlinklarge href="http://www.consumerwatchdog.org/utilities/fs/fs004155.php3

http://]http://www.consumerwatchdog.org/utilities/fs/fs004155.php3<h">[url]http://www.consumerwatchdog.org/utilities/fs/fs004155.php3[/Q[/url]</a>[/L]

I would think the government would have some interest in this as a consumer protection or market manipulation issue of some sort. I'm not yet sure to what extent they should become involved or what corrective measures might be appropriate, but I doubt that Bush is the guy to act against any oil company interests.

I'm sure the Dave and the environmentalist SUV hating wacko crowd are pushing hard to get refineries closed. There are at least 2 sides to every issue. Simply saying 'closing refineries bad' is not looking at the overall picture. Not saying closing this one ISN'T bad, just saying there may be other factors involved such as pressure from environmental groups.

 

[smashp]

So Its not price control measures but pressure from enviromental groups?

Given the "Energy" Industry's recent record of manipulating the Market and creating false Demand Id have to disagree.

This is the result of a Conglomorate Anti-capitalist Mega Corporationswho believe in monopolistic Control.

The victim is Capitalism and the consumers of that system.

 

[conjur]

fixed link

 

[dmcowen674]

Originally posted by: Crimson

I'm sure the Dave and the environmentalist SUV hating wacko crowd are pushing hard to get refineries closed. Not saying closing this one ISN'T bad, just saying there may be other factors involved such as pressure from environmental groups.

I feel sorry for this guy having such a reading problem. Where did I ever say to close refineries??? If you simply look back and read the close to 1,000 Oil/Gas posts you would CLEARLY see I have been calling for more Refineries to be built since the Oil Thugs keep saying they are pumping enough oil but the Refiners can't keep up because there is not enough Refineries.

In fact this Shell Refinery closing is old news and already mentioned in the Oil Thread many times.

You have one part right, hating the SUV's that help us "apparently" not having enough capacity because the SUV crowd sucking down all the gas from the rest of us. That's why I give Hummer drivers and now Escalade drivers the finger when I see them, everybody should, they are hording the Gas.

 

[ciba]

Smashp, can you fix your link? You've *censored* the thread.

 

[LTC8K6]

I agree with Shell. The refinery is small, very old, it's crude supply is drying up, and it supplies only 2% of CA's gas and 6% of it's diesel, numbers that will only get smaller.

Shell said in a statement the shutdown of the 70,000 barrel-per-day plant would be completed by Oct. 1, and would result in a $200 million after-tax charge on third-quarter 2003 earnings.

Roughly 400 people work at the refinery, which was built 70 years ago to process crude from California's Central Valley. Those supplies have been dwindling and Shell figured the refinery would no longer be economical past the third quarter of 2004.

"While the decline in crude availability has been the major factor in the timing of this decision, this closure is just one part of an overall effort to optimize our portfolio," said Lynn Elsenhans, CEO of Shell Oil Products U.S.

Shell has three other West Coast refineries.

Shell announced this in November of 2003.

 

[dmcowen674]

Originally posted by: LTC8K6
I agree with Shell. The refinery is small, very old, it's crude supply is drying up, and it supplies only 2% of CA's gas and 6% of it's diesel, numbers that will only get smaller.

Crude drying up??? But the NeoCons say that's impossible and not happening, no such thing.

 

[LTC8K6]

The particular supply for that refinery, not crude oil in general.

 

[daveshel]

Originally posted by: ciba
Smashp, can you fix your link? You've *censored* the thread.

And while you're at it, the unnecessary apostrophes in your sig kind of ruin an otherwise good idea.