EPA: Special Fuels Not to Blame for Costs

Eugene

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Thu Jun-22-06 04:59 PM
Original message

EPA: Special Fuels Not to Blame for Costs

EPA: Special Fuels Not to Blame for Costs

By H. JOSEF HEBERT
The Associated Press
Thursday, June 22, 2006; 4:38 PM

WASHINGTON -- "Boutique" gasoline blends to help states meet clean air rules are not
a factor in higher prices as President Bush has suggested, says a draft of a study
ordered by the White House.

Although often cited as a reason for volatile gasoline prices, so-called "boutique
fuels" have not caused unusual distribution problems or contributed to price increases,
the report concludes.

<snip>

The review "did not reveal any studies or empirical data confirming that boutique fuels
presently contribute to higher fuel prices or present unusual distribution problems,"
said the draft report.

<snip>

It said that the refining and distribution systems are "able to provide adequate
quantities of boutique fuels, as long as there are no disruptions in the supply chain."

<snip>

Full article: http://www.washingtonpost.com/wp-dyn/content/article/2006/06/22/AR2006062201250.html

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redqueen

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Thu Jun-22-06 05:02 PM
Response to Original message

1. Bush lied? Well color me shocked.

/sarcasm

Anyone who hasn't caught on that they're simply gouging us is a moron.

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lindisfarne

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Thu Jun-22-06 05:07 PM
Response to Reply #1

2. Gouging may contribute some, but get used to increasing gas prices

resulting from inadequate supply and high demand. The oil companies play with the public though: raise the gas prices by 70 cents/gallon, then drop them by 35 cents, and everyone is so happy at the drop they don't complain that they're paying 35 cents/gallon more per gallon than they were.

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redqueen

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Thu Jun-22-06 05:10 PM
Response to Reply #2

3. Seems to me a *large* part of the problem is they're closing refineries

and not building new ones to replace them, at the same time demand is increasing.

And anyone who thinks that's not done intentionally so they can raise prices and increase their profits is also a moron.

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lindisfarne

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Thu Jun-22-06 06:17 PM
Response to Reply #3

4. Prices will still go up due to the demand for oil world-wide increasing

and production cannot increase (read Twilight in the Desert if you want an answer as to why production is limited).

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redqueen

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Fri Jun-23-06 09:28 AM
Response to Reply #4

5. I have a enough books on my 'to read' list.

Care to attempt to summarize?

I'm taking the "production *cannot* increase" statement with a couple tons of salt for now. ;)

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lindisfarne

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Fri Jun-23-06 06:34 PM
Response to Reply #5

6. If you do a google search. you should find a summary somewhere.

Edited on Fri Jun-23-06 06:35 PM by lindisfarne

Essentially the argument is all the data show that the world is at maximum production capacity right now (increasing it could significantly decrease the life-time production of an oil field for reasons the book goes into). It's unlikely any significant oil fields will be discovered - the ones which have been added in the last decade or so are really quite minor.

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