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March 31, 2004
Investigate gasoline investigators
What he has been unwilling to address are the causes for this latest crunch, or even his culpability in the crisis. Reid would have you forget his vote just a year ago preventing new oil field development and his support of the forces opposed to building new refineries. Like many of you, I have memories of better times. One of my fondest memories was a visit made to see relatives in Redlands, Calif., in the late '60s. It was a time before OPEC and the last of the gas wars was in full force. Gasoline came in regular and ethyl and the price for a gallon of regular gasoline was $0.169, down from $0.239. My cousin had a car with a large V-8 engine that got 12 miles to the gallon, we could fill the 25 gallon tank for just over $3 and make Las Vegas in about 4 hours time. We just had to make sure and put extra water bags on the front bumpers. Yes, gasoline was plentiful in those days. There seemed to be a gas station on every corner. And if you traveled the coasts like I was fortunate enough to do as a military dependant, you got to see some of the more than 300 oil refineries that produced regular, ethyl and even diesel gas. Pahrump had a population of about 300, Las Vegas was straining at almost 300,000 and the migration of whole city populations from the east was about to begin. Then came the formation of OPEC and the oil crisis of 1973. And, of course, the first calls for an investigation of the evil and corrupt oil companies making obscene profits were heard in the hallowed halls of Congress. A great deal has changed in the 39 years since. According to the Federal Highway Commission there are about 28 million more cars on the road today, and even though they are more fuel-efficient, they still consume 40 percent more gasoline than back then. Another big change has been in our ability to produce gasoline. The last new oil refinery built in our country was completed in 1976 in Louisiana, and the number of operating refineries is half the number that existed in 1973. Environmental regulations and restrictions, plus the BANANA (Build Absolutely Nothing Anywhere Near Anybody) crowd activists are the chief reason for this shortage. Additionally, instead of just a few types of gas, today we have federal, state and local EPA's requiring 15 different boutiques of gas, one flavor every six months for different sections of the country. Clark County is one of those with switches each March and October. I can't imagine the price we would pay if a large corn grower were to relocate here and ask our elected representatives to push ethanol as a mandatory alternative fuel. In 2003 a refinery in California broke down in the process of switching blends, plus a pipeline broke in Arizona and wham, supply ran short almost immediately. Prices shot up nearly 40 percent, but thankfully the refinery and oil pipeline were repaired and gasoline prices went down some. These price spikes are always caused by supply and demand. This is basic economics. In many areas of the country today, home prices are going through the roof due to a shortage of available homes in markets people wish to buy. Southern Nevada is definitely one of those areas, Pahrump included. Oil is no exception. Today we have OPEC reducing output to support the price and a cabal in the U.S. Senate refusing to allow new production by domestic suppliers due to "environmental "concerns. Add the reduction of our strategic reserve in the 1990s and we now import more oil than we produce and are at the mercy of foreign oil states. Does prohibiting U.S. oil drillers from working, in areas few people would want to visit, make sense when gas is heading to $3 a gallon? And why does building a new refinery require up to 800 permits and come with price tags ranging from $2 billon to $4 billion, depending on location? There has been one attempt to build a refinery. The original plan was submitted in 1978. After six years of filing plans, paying for permits, being harassed by the BANANA crowd, and expending over $180 million without ever breaking ground, the plan was withdrawn in 1984 and no company has chosen to go through the ordeal since. So yes, it would appear an investigation into why gasoline costs so much is very much in order. Sadly, the ones who would be doing the investigating are the ones who need to be investigated the most. But then, that's the way it is with government. The gas crunch is simply another problem for which they will provide sound bites but no solutions, accusations but no proof. After all, we will pay the bill, not the politicians. (Little writes from Pahrump. His column, "The Other Side," appears here on Wednesday. Write to him at boblittle@airinternet.com.) |
