Another First For Politidose

It was pointed out here in politidose long ago how representatives from the oil and gas industry, President George W. Bush and Vice President Dick Cheney lied to the American people when they said no new oil refineries have been built in the last 30 years in the U.S. because of environmental reasons and the cost thereof. 

 

No new refineries have been built because there has been no demand because there was no shortage of stockpiles, ethanol was added to the mix and most existing refineries have been expanded.  The CEO's of Chevron and other major oil companies testified to that before congress under oath.  In fact they stated why should we build a new refinery when ethanol is being pushed to reduce the use of gasoline.  Republicans and representatives of the oil and gas industry have long made the environmental problem the whipping boy and out right lied to the people and used that every time the price of oil and gasoline spiked.

 

Now we read in an article in the New Orleans Times Picayune of 5/2/09 how Marathon Petroleum is increasing its oil refinery capacity at its Garyville, Louisiana refinery which now ranks as the 18th largest in the country and will move up to number 4 in 2010 when the expansion is complete.  The refinery now processes 256,000 barrels of oil a day and when completed, will process 436,000 barrels of oil a day, an increase of 70%.  The reader will remember it was said in politidose long ago that almost every refinery in Louisiana has increased its capacity in the last several years.  The fact is oil refineries have not stood still but you don't hear that from the liars.

 

There are more kickers in the Marathon Oil story.  Alfonse Mannato, an analyst with the American Petroleum Institute said oil companies have enlarged existing facilities during the past decade creating the equivalent of one new refinery every year.  The fact that it is an expansion and not a new refinery does not diminish its importance.  That is a powerful statement devastating to the liars.  Rich Bedell the facility manager described the expansion as a long held plan by Marathon that did not take into account the high prices of last summer or the subsequent downturn.  That is another powerful statement that is at odds with those who say the price of gasoline should be $4.00 gallon.

 

Marathon's investment in the project expansion is $3.4 billion.  Louisiana allowed the company to use $1 billion in Gulf Opportunity Zone bonds, a tax free financing device authorized by Congress to help the state recover economically after Hurricanes Katrina and Rita.  The plant now has 920 jobs that will go to 1200 jobs when complete.  Mr. Bedell called the refinery one of the most efficient in the nation.

 

The American people deserve to be told the facts concerning what is taking place in the oil and gas industry and the prices the people have to pay.  That has not been the case.  If any one still has any doubts about the manipulation of prices in this industry I guess the lies will continue.  An electorate who wants to really understand what is happening can make change for the better. 

 

The bottom line to the Marathon story is that existing refineries have enlarged and up graded their refinery capacity to keep up with demand and that there has be no major shortage of refinery capacity to cause the run up in prices the country has seen in the last 5 years.  Liars will always be liars.