How so? Do not pollution laws and tort liability have anything to do
with building a new refinery in the U.S. cost prohibitive?
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The environmental laws in the US are indeed the primary cause
for the loss of refining capacity. Beginning in 1970 the US
government passed laws that essentially lead to the exportation
of the pollution from the US, along with the jobs produced. The
production of steel, aluminum, lead, zinc, chemicals, cement,
paint, and tanneries etc. was sent overseas. By 1981 the cost of
rebuilding a refinery, in accordance with new environmental
regulations, was simply not cost effective and the refinery was
shut down. Refineries
can be build much less expensively in other countries. ALL new
refineries since that time have been built overseas. It is much
more cost effective to simply import the refined products.
Gasoline for instance has been imported into the
US for years and the amount grows every year. Refiners in
the US are nun mostly to produce these oil derived products use
by industry in the US, with gasoline as necessary by-product,
much as it was in the early part of the twentieth century.
Dick C wrote:
ZERO- Tree Huggers and Environmental Wackos won't allow them to build,
drill, explore even though there is a LOT of oil in the ground.
Also depends a lot on demand for that fuel.
Get the greenies and nutcase democrats out of the way and they would
build and produce more.
How are we falling for it when it is ridiculous laws and lawsuits that
keep them from expanding, like a LOT of other industries.
Like lumber production. Thanks to laws passed during Clintons term a LOT
of timber is sitting there being unused and the regulations
passed closed a lot of lumber plants as well.
It's a manipulated market and has been for "a long time". The miracle is that
it has taken this long for them to manipulate the price this high. Who knows
why they left it low before, but it has very little to do with "supply and
| It's a manipulated market and has been for "a long time". The miracle is
| it has taken this long for them to manipulate the price this high. Who knows
| why they left it low before, but it has very little to do with "supply and
Your premise makes little sense. IF that were the case we'd be paying $10 a
It's a combination of things. First off, there is no such thing as
effective antitrust laws, which put too much power in the hands of
Then there are some environmental laws which go too far.
Much of the complaints about environmental and lawyer problems are
perpetuated by large corporations and their own CORPORATE LAWYERS.
There is little doubt the refinery problem is a deliberate and legal
way to increase the price of gasoline.
This is pretty much the same kind of garbage Enron pulled a couple of
years in California during the manipulated energy crisis.
I am always amused by statements of shortages when there is more than
enough for everyone, if you will pay a Kings ransom for it.
Once upon a time a shortage actually meant there were no supplies
available, but thanks to the dumbing down of Americans, anything the
spin doctors say, is accepted as fact.
And the "facts" supporting your view are what exactly ?????
It is a fact that no new refineries have been built in the USA in over 15
It is a fact that the North American consumer is buying more gasoline today
than ever before.
It is a fact that gasoline specifications are now being mandated by many
individual states in such a way as to both require costly refinery upgrades
and different fuel blends for different markets. It is also a fact that
many refineries have closed down rather than attempt to meet the new state
and federal government requirements.
The US gasoline market is demonstrating high price inelasticity, which means
that people on the whole are not buying significantly less even as the price
Many people complain about high prices, but few people do the things in
their own personal control which would reduce their use of fuel and thus the
money they spend on it.
The foolishness of the majority of people explains more than does the
machinations of corporations.
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