YubaNet.com
Friday, October 31 2014

            We Deliver News to the Sierra
News Fire News spacer Latest News spacer Regional News spacer California News spacer USA News spacer World News spacer Op-Ed spacer Enviro News spacer Sci Tech News spacer Life spacer Odd News spacer Cartoons spacer
Features The Calendar features features Weather features Sierra NightSky features features features Road Conditions features Home spacer
CA
 

Consumer Watchdog Calls For Criminal Investigation Of Refiners Over Study Showing False Info Led To $5 Per Gallon Gasoline


    Google+    

By: Consumer Watchdog

Santa Monica, CA November 16, 2012 – In a letter today, Consumer Watchdog called on California State Attorney General Kamala Harris to launch a criminal investigation into the conduct of oil companies in the state based on new information that oil refiners were running refineries and building inventories even when they said that they were performing maintenance.

The full letter follows below.

"It appears that California's oil refineries falsified public information to drive up the price of gasoline, an allegation that, if true, is criminal conduct and reminiscent of the Enron-like manipulation of the California energy market," Consumer Watchdog's president Jamie Court and Energy Project Director Liza Tucker wrote to Attorney General Harris. "This unprecedented information demands a criminal investigation."

Consumer Watchdog reiterated its call for the AG to block the merger of Tesoro and BP, pointing out that if Tesoro takes over BP's refinery in Carson, that will leave two companies—Tesoro and Chevron—controlling 54 percent of California's already overly concentrated gasoline market and exacting a heavy price from consumers.

"Information we learned today only reinforces our call for blocking the merger. McCullough Research reports today that refineries in the state were making gasoline while telling the public that they weren't because of outages or maintenance. McCullough Research analyzed thousands of pages of documents and discovered refineries were operating during supposed outages and maintenance shutdowns.

"McCullough says that in May, when Royal Dutch Shell's Martinez plant was supposedly down for two weeks for maintenance, it was making gasoline at least half the time. State air monitors showed nitrogen oxide emissions associated with making gasoline returned to normal at that location a whole week before the refinery reported coming back on line.

"At Chevron's Richmond refinery, emissions reports suggest that the refinery never shut down, though it reported being down for two weeks in May. Supplies were actually growing in May when consumers here paid at least 50 cents more per gallon than the national average, the group said. October's huge price hike that pushed gasoline up 50 cents a gallon in the space of a week was partly blamed on Chevron's Richmond fire in August. But McCullough says that Chevron's supplies at the time were only growing.

"When the state only has ten to thirteen days of gasoline supply on hand, misinformation about a week's worth of gasoline can cost the consumer $1 per gallon or more at the pump. False information can set the commodities markets on fire. Oil companies know this well and their profits are dependent on misaligned expectation in the commodities market. We urge you take action immediately to prevent California consumers from being gouged by the same type of artificial manipulation of the energy markets that occurred during electricity deregulation."

 

Help us bring you more news. Be a real reader: Support YubaNet

By submitting a comment you consent to our rules. You must use your real first and last name, not a nickname or alias. A comment here is just like a letter to the editor or a post on Facebook. Thank you.

 

Latest Headlines

CA

U.S. Attorney Names District Election Officer for November 4 General Election

High-quality drug testing helps protect the integrity of California horse racing

AG Kamala D. Harris Releases Data Breach Report; 18.5 Million Californians' Personal Information Put at Risk

New Report: Action Needed Now to Fix Climate Change Preparedness Deficit

Homeowners Are Encouraged To Prepare Their Trees for Winter Season In Case Rain Is Scarce

Napa, Solano County Residents to Receive Federal Individual, Household Aid Following South Napa Earthquake

California Dungeness Crab Season to Open Nov. 1, 2014

Rep. Garamendi Urges Action on Wildfire Funding in Letter to House Leaders

Forest Service Agrees to Reconsider Wilderness Protection in Los Padres National Forest

CHP 'Shifts Gears' with new, revised teen driver program


More

 

 

 

 

NEWS . Fire News . Latest . Regional . California . USA . World . Op-Ed . Enviro . Sci/Tech . Life . Odd News . Cartoons
FEATURES . The Calendar .Weather . Sierra NightSky. Road Conditions
YubaNet.com . Advertising. About Us . Support YubaNet . Contact Us . Terms of Use . Privacy

YubaNet.com © 1999-2014
Nevada City, California (530) 478-9600