What Is It About California?
I mean, it wasn't that long ago that Enron and the other energy giants raped the state to the tune of billions, causing brown outs and costing a governor his job. Now it's the oil companies and refiners.
This morning, some of the regulars at Eschaton were remarking about the drop in gasoline prices at the pump. I was confused. I filled up yesterday to the tune of $3.379, which, if I had filled up on my way to work instead of on my way home, would only have been $3.349. Someobody at the LA Times noticed this as well.
California's average gas price jumped 13 cents to $3.332 for a gallon of self-serve regular during the week ended Monday, another record high for the Energy Department's weekly survey. Nationwide, the average price at the pump fell a penny to $2.909 a gallon.
"This makes no sense," said Rob Schlichting, spokesman for the California Energy Commission, which tracks prices and supply-and-demand data for the state. "We know of no market event that would cause what the market is doing right now."
At the same time, oil refiners in California are collecting record-high gross profit margins on each gallon of gasoline they make.
...Joe Sparano, president of the industry trade group Western States Petroleum Assn., said he couldn't pinpoint a specific reason for California's stubbornly high retail prices. But he noted that the state suffered from a chronically tight supply of gasoline — a factor that often triggers price increases.
"That's just the free market at work," he said. "I don't think that anyone has any better explanation."
But the energy commission has received no reports of import troubles, refinery outages or production cutbacks at the state's 14 gasoline-making plants. The commission's latest refinery report, reflecting fuel inventories and production for the week that ended May 1, "was not a bad report," Schlichting said. [Emphasis added]
This kind of news seems to make the Emperor's statement that he doesn't believe his oil buddies are playing with the prices somewhat suspect, doesn't it?
Of course, most of the things he has said and continues to say falls into that category.
This morning, some of the regulars at Eschaton were remarking about the drop in gasoline prices at the pump. I was confused. I filled up yesterday to the tune of $3.379, which, if I had filled up on my way to work instead of on my way home, would only have been $3.349. Someobody at the LA Times noticed this as well.
California's average gas price jumped 13 cents to $3.332 for a gallon of self-serve regular during the week ended Monday, another record high for the Energy Department's weekly survey. Nationwide, the average price at the pump fell a penny to $2.909 a gallon.
"This makes no sense," said Rob Schlichting, spokesman for the California Energy Commission, which tracks prices and supply-and-demand data for the state. "We know of no market event that would cause what the market is doing right now."
At the same time, oil refiners in California are collecting record-high gross profit margins on each gallon of gasoline they make.
...Joe Sparano, president of the industry trade group Western States Petroleum Assn., said he couldn't pinpoint a specific reason for California's stubbornly high retail prices. But he noted that the state suffered from a chronically tight supply of gasoline — a factor that often triggers price increases.
"That's just the free market at work," he said. "I don't think that anyone has any better explanation."
But the energy commission has received no reports of import troubles, refinery outages or production cutbacks at the state's 14 gasoline-making plants. The commission's latest refinery report, reflecting fuel inventories and production for the week that ended May 1, "was not a bad report," Schlichting said. [Emphasis added]
This kind of news seems to make the Emperor's statement that he doesn't believe his oil buddies are playing with the prices somewhat suspect, doesn't it?
Of course, most of the things he has said and continues to say falls into that category.
posted by Diane at 10:24 AM
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