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Oil companies look at permanent refinery cutbacks

Los Angeles Times -- Some of the nation's biggest oil companies are looking at permanently reducing how much gasoline and diesel fuel they make, a move that analysts say would almost certainly trigger higher prices for drivers.

"We know from internal documents from the last time we had a situation like this, in the 1990s, that there was an intentional strategy on the part of some companies to drive up profit margins by shuttering or closing refineries," said Tyson Slocum, director of Public Citizen's energy program.

Refiners say they're merely trying to improve profits so they can keep making gasoline.

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Submitted Mar 11, 2010 By: fordmexico

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NavyEOD Champion Author Los Angeles Posts:5,159 Points:1,062,540 Joined:Jul 2007	Message Posted: Mar 11, 2010 10:30:38 AM Ignore NavyEOD Report Abuse This is very bad news. We need alternative fuels.
CPapi Veteran Author Chicago Posts:349 Points:83,850 Joined:Nov 2009	Message Posted: Mar 11, 2010 10:30:28 AM Ignore CPapi Report Abuse "so they can keep making gasoline" and why are you closing refineries in the US?
checkum Champion Author St. Louis Posts:3,335 Points:662,790 Joined:Jan 2008	Message Posted: Mar 11, 2010 10:29:09 AM Ignore checkum Report Abuse cutting back on refining = greed
greysquirrel Sophomore Author Cincinnati Posts:187 Points:55,925 Joined:Sep 2008	Message Posted: Mar 11, 2010 10:26:49 AM Ignore greysquirrel Report Abuse They're already making record profits. How much more do they want to squeeze out of us?
njerald Champion Author Seattle Posts:2,907 Points:669,405 Joined:Oct 2007	Message Posted: Mar 11, 2010 10:25:12 AM Ignore njerald Report Abuse Right on!!!!!
BlueVanGroup Champion Author Colorado Posts:2,270 Points:577,385 Joined:May 2008	Message Posted: Mar 11, 2010 10:24:53 AM Ignore BlueVanGroup Report Abuse Looks like the "keep conserving" mantra (and the economic slowdown) is taking effect.
wiwhite87 Champion Author Indiana Posts:1,034 Points:120,835 Joined:May 2009	Message Posted: Mar 11, 2010 10:19:18 AM Ignore wiwhite87 Report Abuse New refineries aren't about to happen. Who wants to invest in such a business when there's already a surplus. These refineries aren't old... they get rebuilt and MAJOR additions frequently. This is how we end up producing more fuel all the time. I'd rather see the environmental damage held in check where it is now instead of abandoning these sites or demanding new ones in someone's backyard... after all NIMBY applies.
Dennis783 Champion Author Wisconsin Posts:8,766 Points:1,749,840 Joined:Sep 2005	Message Posted: Mar 11, 2010 10:19:11 AM Ignore Dennis783 Report Abuse they just want to keep the price high by restricting supply of gas
jarrjazz1 Champion Author British Columbia Posts:2,189 Points:446,240 Joined:Sep 2008	Message Posted: Mar 11, 2010 10:17:43 AM Ignore jarrjazz1 Report Abuse keep conserving!
SUPERQUACK Champion Author Sacramento Posts:1,472 Points:987,100 Joined:Jun 2007	Message Posted: Mar 11, 2010 10:15:36 AM Ignore SUPERQUACK Report Abuse ANYTHING TO MAKE PROFITS AT OUR EXPENSE AND CUT DOWN SUPPLY ....
twiper1 Champion Author San Diego Posts:2,946 Points:632,095 Joined:Oct 2008	Message Posted: Mar 11, 2010 10:14:43 AM Ignore twiper1 Report Abuse Reduce production equals less supply equals higher costs
The_Gunslinger Champion Author Arkansas Posts:1,897 Points:384,340 Joined:Oct 2008	Message Posted: Mar 11, 2010 10:14:33 AM Ignore The_Gunslinger Report Abuse Improve profits to keep making gas? You must have me messed up.
skippypa Champion Author Hawaii Posts:3,524 Points:765,115 Joined:Jun 2008	Message Posted: Mar 11, 2010 10:13:20 AM Ignore skippypa Report Abuse I would think they would be cutting their own throats by reducing production.
gasokie All-Star Author Oklahoma Posts:550 Points:578,695 Joined:May 2007	Message Posted: Mar 11, 2010 10:12:04 AM Ignore gasokie Report Abuse I don't think refiners are concerned with keeping prices down. Nor would I expect them to be. Their stockholders and boards of directors are interested in making a profit. The bigger the better. There is no place to put excess refinery runs. This causes dumping and profit losses. And if demand comes back later and there are shortages? Well, like fordmexico says, no harm done to the refiners. Prices and profits will skyrocket!
afghaned Champion Author Hamilton Posts:4,381 Points:312,775 Joined:May 2004	Message Posted: Mar 11, 2010 10:10:50 AM Ignore afghaned Report Abuse Greed & more greed.
stadlgi Champion Author Akron Posts:1,795 Points:1,192,640 Joined:Jun 2004	Message Posted: Mar 11, 2010 10:09:07 AM Ignore stadlgi Report Abuse These clowns will do just about anything to artifically inflate fuel prices. I don't know which is worse, oil company execs, Congress, el Presidente, speculators - which? All of these need to be dragged kicking and screaming into the face of reality.
rowing All-Star Author Macon Posts:880 Points:261,610 Joined:Sep 2009	Message Posted: Mar 11, 2010 10:07:41 AM Ignore rowing Report Abuse This called being greedy at our expense, which will make everything go higher
investmentdr All-Star Author Cleveland Posts:524 Points:531,650 Joined:Sep 2008	Message Posted: Mar 11, 2010 10:07:26 AM Ignore investmentdr Report Abuse whatever happened to the "zero excess refining capacity" and the "US has not built a new refinery in 20 years" headlines from 2 years ago? neither demand nor prices have changed THAT much.
SeerLV Champion Author Las Vegas Posts:3,498 Points:717,685 Joined:Jun 2008	Message Posted: Mar 11, 2010 10:07:09 AM Ignore SeerLV Report Abuse Just another scheme by greedy people to squeeze more money out the American people
bluebird1 Champion Author Toronto Posts:10,732 Points:2,147,270 Joined:May 2004	Message Posted: Mar 11, 2010 9:54:34 AM Ignore bluebird1 Report Abuse This is just nuts, as they have already reduced capacity to keep prices high before....they are making a good profit & want to make windfall profits & this would allow them to do that. When demand increases (read in the US this already happened last month) they can claim how unexpected it is & its not their fault gas is double what they forsaw. So gasokie...its not to their surprise...they're counting on it to use it to gouge consumers.
gasokie All-Star Author Oklahoma Posts:550 Points:578,695 Joined:May 2007	Message Posted: Mar 11, 2010 9:31:23 AM Ignore gasokie Report Abuse A little over a year ago there was whinning that no new refineries had been built in the USA for 30 years. Now they can't utilize what they can refine. Will demand ever be the same? Yes. It will come back...to their surprise.