Sunday, April 17, 2011

Oil/Gas prices.

New York Sen. Chuck Schumer last month:

“Oil price goes through the roof and what does the president do? He takes out the old saw of ANWR,” said Sen. Charles Schumer (D-NY), speaking at a rebuttal press conference. “ANWR wouldn’t produce a drop of oil in 10 years, and it’s estimated that if they drilled in ANWR, in 20 years it would reduce the price one penny. And that’s the president’s answer to the oil crisis.”

Schumer last week:

A group of Democratic Senators Tuesday threatened to block a multi-million dollar US arms deal with Saudi Arabia, unless the kingdom ups oil production and helps cut soaring gasoline prices.
The senators introduced a resolution of disapproval on the arms sale, as President George W. Bush prepared to head for Saudi Arabia, partly on a mission to contain runaway oil prices.
“We are saying to the Saudis that, if you don’t help us, why should we be helping you?” said New York Democratic Senator Chuck Schumer.
“We are saying that we need real relief, and we need it quickly. You need our arms, but we need you to cooperate and not strangle American consumers.”
The resolution, expected to be fast-tracked to the senate floor, would prohibit the mammoth arms sale unless Saudi Arabia agrees to increase oil production by one million barrels per day.
Schumer, speaking as the price of a barrel of crude oil hit a record 126.98 dollars, said the extra Saudi oil could bring down the price of a gallon of gasoline at the pump by 50 to 75 cents.

It’s difficult to reconcile these two statements. Is Saudi oil just more naturally potent than U.S. oil? Is it imbued with the power of the Magical Unicorn?

Schumer says that inferior ANWR oil would only drop oil prices by one cent in 20 years … is he suggesting that the U.S. economy is going to go so far in the tank that in 20 years what is worth 50-75 cents today will only be worth 1 cent in 2028?

Is that a threat or a promise?

Schumer was either lying then, or he’s lying now. I’m curious to know which one is right.

Sen. Schumer Out Against Gas Price Gouging

By Sean Seid
Epoch Times New York Staff
Sep 13, 2005

U.S. Senator Chuck Schumer (D-NY) speaks at a press conference in front of a gas station in New York City. (Stephen Chernin/Getty Images)

NEW YORK - Senators Charles E. Schumer and Jon S. Corzine are calling for the Federal Trade Commission (FTC) to investigate possible gasoline price gouging on already high gasoline prices caused by Hurricane Katrina in the New York and New Jersey Metropolitan area. The two senators held a press conference at a Luk Oil gas station in Manhattan on Labor Day.
“That is why we are asking the FTC to do a thorough study, to come back to us with the recommendations on how we eliminate price gouging at a time and a place that should be focused on all of us pulling together as a community as opposed to taking advantage of circumstances,” said Sen. Corzine of New Jersey.
Despite the oil supply issues put forth by Hurricane Katrina, Schumer and Corzine argued that the “fluctuations” and “disparities” in gas prices in neighborhoods in New York City and New Jersey were the result of “excess profiteering” by many parties from major oil companies down to local gas stations.
“The prices could be below $3.00 at one station and around the corner they’re close to $4,” said Sen. Schumer of New York. “It’s about time the FTC look at this from start to finish, from where the oil is pumped to where its refined, to the pump line that ships it up, to the individual gas stations.”
A survey showing price ranges over various gas stations within the five boroughs released by Schumer and Corzine reported ranges of $3.19 to $3.55 in Manhattan.
The average “Regular” gasoline prices in New York City, according to AAA, costs about $3.25, up $0.64 from a month ago. In New Jersey, prices on average were $3.16, up $0.86 from a month ago. Gasoline prices across the country vary from a high-$2 range to a mid-$3 range.
“This is unheralded, unprecedented and it’s costing people in the Metropolitan area a fortune,” said Sen. Schumer.

Sen. Schumer wants investigation of major oil companies

(WXXI) - United States Senator Charles Schumer wants the Government Accountability Office to investigate whether the four major oil companies are deliberately keeping gasoline supplies low.

Schumer spoke at a Rochester service station Monday while customers pumped gas at $3.05 a gallon behind him. The New York Democrat says U.S. refinery capacity is at a 20 year low, producing at 88% instead of 98% as usual. He says the low supply and high demand have forced prices up by $.60 over the past two months. Schumer says it's possible that the oil companies are not using their record-profits to properly maintain their pipelines and refineries. He says that would amount to artificially holding down gas supply to keep prices high. He says he'll ask the GAO to do a one-month study on the refinery situation. And he says an energy bill coming up in the senate in about two weeks will include tough anti-price gouging legislation.

Schumer says there are just four big oil companies now, and they all tend to set the same prices. He also wants to look into breaking up the big oil companies as the Standard Oil Trust was broken up a hundred years ago.
© Copyright 2011, WXXI

Sen. Schumer calls for probe of oil refineries and high gas prices

Gasoline prices are actually rising quicker than expected
, at least in some areas of the United States. Here in Michigan, in fact, they're setting record highs. Over in New York State, Sen. Charles Schumer has called for a federal investigation into the oil refineries over the price spike. According to Newsday, Schumer says that the high prices might be the result of oil companies being lax on maintenance and therefore short on capacity.

"The looming question is, are they putting money into maintenance and keeping up refineries as they should?" Schumer asked, according to the article. "Or are they happier with lower production and higher prices? ... What they should be doing is making sure the existing capacity they have is fully utilized."

The Government Accountability Office will investigate the refineries, and Schumer said he hopes results will be available in "a couple of months."

In the meantime, Drive Smarter.

[Source: Jennifer Barrios / Newsday; Detroit Free Press

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