H
Harry Hope
Guest
The Consumer Federation's Cooper said the refining industry hasn't
even tried to build new refineries and has instead closed 50 since the
1990s rather than make investments to make them comply with pollution
laws.
"They would rather not try and blame their neighbors," he said.
http://money.cnn.com/2007/05/16/news/economy/gas_prices/index.htm?cnn=yes
May 16 2007
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.
By Steve Hargreaves, CNNMoney.com staff writer
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.
Gas prices hit $3.10 a gallon Wednesday, according to AAA.
It's the fourth record day in a row, and the surge has been attributed
to low gasoline supplies caused by a lack of refining capacity.
"They have no interest in building spare capacity because that would
undermine their pricing power," Mark Cooper, research director for the
Consumer Federation of America, said prior to a hearing by a House
Judiciary Committee antitrust panel in Washington Wednesday.
6 ways to lower gas prices
At the hearing, monitored on television in New York, Cooper was just
as blunt.
"This is a picture of fundamental market failure," he said.
"And Congress and the administration have stood by and done nothing to
help consumers."
Cooper pointed to the record earnings at oil companies and said in any
other industry this would attract new businesses.
But he said the domestic refining industry has continued to
consolidate, allowing operators to shun building refineries, run
existing ones at full throttle and thus cause many of the accidents
and outages the nation has experienced over the last few months.
"This is just mismanagement," he said.
"But they get away with it because there is no competitive
discipline."
Others at the hearing said Congress should use its power to regulate
monopolies and break up the big oil companies if it is found they have
violated the law.
"There is near unanimity among economists that there is a
concentration of power," said Connecticut Attorney General Richard
Blumenthal, who also voiced support for a proposal to sue OPEC for
price fixing.
The oil companies "have clearly demonstrated that they will abuse it."
______________________________________________________
Harry
even tried to build new refineries and has instead closed 50 since the
1990s rather than make investments to make them comply with pollution
laws.
"They would rather not try and blame their neighbors," he said.
http://money.cnn.com/2007/05/16/news/economy/gas_prices/index.htm?cnn=yes
May 16 2007
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.
By Steve Hargreaves, CNNMoney.com staff writer
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.
Gas prices hit $3.10 a gallon Wednesday, according to AAA.
It's the fourth record day in a row, and the surge has been attributed
to low gasoline supplies caused by a lack of refining capacity.
"They have no interest in building spare capacity because that would
undermine their pricing power," Mark Cooper, research director for the
Consumer Federation of America, said prior to a hearing by a House
Judiciary Committee antitrust panel in Washington Wednesday.
6 ways to lower gas prices
At the hearing, monitored on television in New York, Cooper was just
as blunt.
"This is a picture of fundamental market failure," he said.
"And Congress and the administration have stood by and done nothing to
help consumers."
Cooper pointed to the record earnings at oil companies and said in any
other industry this would attract new businesses.
But he said the domestic refining industry has continued to
consolidate, allowing operators to shun building refineries, run
existing ones at full throttle and thus cause many of the accidents
and outages the nation has experienced over the last few months.
"This is just mismanagement," he said.
"But they get away with it because there is no competitive
discipline."
Others at the hearing said Congress should use its power to regulate
monopolies and break up the big oil companies if it is found they have
violated the law.
"There is near unanimity among economists that there is a
concentration of power," said Connecticut Attorney General Richard
Blumenthal, who also voiced support for a proposal to sue OPEC for
price fixing.
The oil companies "have clearly demonstrated that they will abuse it."
______________________________________________________
Harry
