Dear Editor,
There is no shortage of crude oil or gasoline. The real problems lie with: 1. The refining monopoly converting crude to gasoline. 2. The restrictions on tapping our own oil.
The large refining companies have, by design, refused to build sufficient refineries. They control how much gasoline can be produced and delivered to filling stations. The long hose from oil well to gas tank is bottlenecked by the shortage of refineries.
The refinery industry has built just enough refinery capacity to meet our need. But when, not if, there is a refinery interruption such as maintenance, severe weather, leakage, a plant fire or an unexpected increase in consumption, the refineries announce our needs cannot be met. We know when this happens, prices spike upward!
In 1976 there were 324 refineries in the United States. Now there are 148. Demand has increased 38 percent, yet refineries decreased by 54 percent. Furthermore, The Dispatch published an article last year by the Kansas City Star stating that a French company refused a $37 million offer to buy their U.S. Refinery. Instead, they closed the plant, laying off its employees without giving the reason why except to say “it was for business reasons”. Later, the refinery company admitted they would not benefit by selling their U.S. refinery because the ability to put more gasoline on the market would result in lower prices. The oil and refining industry and politicians fully understand this is price manipulation of a commodity – one that is vital to the U.S.
No longer should the oil and refinery industry manipulate the refining process by creating their own shortage of refineries. We have long needed to build more refineries, not less, to eliminate price manipulation.
Secondly, we have sufficient crude oil. Its availability is controlled by OPEC, the oil industry and drilling restrictions exacted by environmentalists. We do not have to be so dependent on OPEC for crude. Saudi Arabia stated that even if they sold us more crude, we could not refine it. Furthermore, there is plenty in Anwar, in the continental U.S. and off the U.S. coasts.
The environmentalists have also prevented the building of dams which can produce additional power without any oil at all. We can insure the availability of oil by producing just 15 percent more, which would cause a surplus on the market. This would cause a sharp drop in the price of oil and oil futures speculators would have no fear of a shortage, keeping prices stable and low.
These basic tenets must be imposed without compromise. Vote for candidates who will do this.
Jim Langdon, Gilroy
