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API says more US oil needed to cut gasoline costs

02.22.2012  | 

John Felmy, chief economist with the American Petroleum Institute (API) trade group, says the US must develop more of its own oil and natural gas and allow additional oil imports from Canada. "By far, the single biggest factor in today’s higher gasoline prices is the rising cost of crude oil," Felmy said.


John Felmy, chief economist with the American Petroleum Institute (API) trade group, said Wednesday that the US must develop more of its own oil and natural gas and allow additional oil imports from Canada.
Those steps would both increase energy security and help address higher gasoline prices, he said.

On a conference call with reporters, Felmy’s remarks were as follows:

“By far, the single biggest factor in today’s higher gasoline prices is the rising cost of crude oil,” Felmy said. “It has driven virtually all the rise in gasoline prices.

“Together, what refiners have to pay on the world market for crude plus gasoline taxes accounts for over $3.00 - or about 84% - of what people are paying at the pump today.

“Exports are not causing gasoline prices to rise. Less than one-sixth of product exports have been gasoline, and only a tiny amount of this was the reformulated gasoline used in larger metropolitan areas.

“US refiners produce fuels primarily for American markets and always have. However, when supplies are available to export - as they are today because of weak US demand – they put downward pressure on the prices of the gasoline and other products we import.

“Exports also mean jobs for Americans, including good paying US refinery jobs, and a lower trade deficit.

“The administration understands that rising crude oil prices are driving higher gasoline prices. We agree with that. But we don’t agree on solutions. The industry must be allowed to develop at home more of its ample crude oil and natural gas resources.

“More US barrels on crude markets would help drive down crude costs and reduce gasoline prices. We need policies that ease access to US oil and natural gas resources, which are still very ample.

“We also need policies that add critical infrastructure, such as building the Keystone XL pipeline, to bring in more of Canada’s vast supplies of oil, and policies that keep regulations and tax policy reasonable.

“The administration has not stepped up to the plate on any of this.”

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Iran faces a delicate issue. On the one hand it wants to show the world all it’s got and put it at ease, while on the other hand it fears that such show 'n tell will give its enemies a roadmap to bomb it.
Saddam Hussein faced a similar dilemma ten years ago. Though he wanted the world to know he had nothing to hide, he also wanted to bluff his archenemy Iran into believing Iraq still had WMD.
Bluffing did not go well for Saddam, and it might not go well for Ahmadinejad.
But since the price tag for ridding Saddam proved high, maybe we ought to reflect what we are asking of Iran now. On the eve of a threatened attack, we are asking it to take us to the depths of its arsenal and show us all it's got.
Such great expectations are a sign we have been talking to our friends too long and are in need of a broader perspective. Exactly when was the last time we asked Pakistan, India, China or Russia to show us their arsenal?
“But those countries are not advocating the destruction of Israel.”
True, but Israel is not a thorn on their side either.
Surely, however, we can see beyond the hyperboles and figure out their underlying purpose. Or have we forgotten that not all Iranians are thrilled with Ahmadinejad?
He sure hasn’t.
Nor has he forgotten that that his countrymen hate Israel even more. So he tells them that Israel will be wiped from the face of the earth. Expectantly, this nonsense unites them against a common enemy. It is even a diversion from the misery and isolation brought on by his theocratic regime.
Quite clever work by Ahmadinejad -- and not a rial spent or a bullet fired.
So why are we letting the crazy talk about destroying Israel get us all worked-up -- to the point of turning the world topsy-turvy again.
Can we not see the desperate attempts of an unpopular regime simply trying to hold on?


Why is more oil is neded to cut gasoline price? See article on closing the Hovensa refinery in the Virgin Islands. A JV between Hess / PDVSA. Could it be that Pdvsa cannot supply the amount required to keep the refinery profitable? Why other refineries in US and Europe have closed down. too? referred in the above cited article. This two articles seem to contradict each other,regards

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