Gasoline and the Refinery Game.
Most people may not know that we have not added to our refining capacity in over thirty years. We refine crude oil into many types of fuel. We certainly have need of a variety of fuels to meet the requirements of our toys. Cars, boats, trucks, trains, jets, lawnmowers etc…, all have specific requirements. All play a role in our overall demand for oil. But, politics and special interest groups have long ago created an overwhelming burden on the system. Enter Boutique fuels. These are “special” fuels required by “special” states for “special” reasons. These fuels account for the higher fuel prices throughout the US. There fuels create a demand and burden on the overall production and supplies of gasoline and therefore the pricing of same.
I have only heard one person in the government mention these fuels is any context regarding the “burden” they impose and their desire to eliminate them. Doing so would dramatically free up production, greatly reduce the costs of production and therefore lower the demand for Oil and the cost to the consumer. That was over a year and a half ago and nothing ever became of it.
Additionally, it should be noted that the refining companies ( big Oil ) has noticed that there is a far greater demand for Diesel fuels world wide then for gasoline. So, they have ( at great expense ) converted a lot of production from gasoline to diesel fuels that they can export and make greater profit from. This also drives down the supply of gasoline and therefore increases to cost to the consumer. The good old supply and demand theory at its best, when it can be manipulated by those who control the commodity.
Executive Chao$ 