Cantwell, Murray seek probe of refineries
WASHINGTON (AP) - Six Democratic senators representing states along the Pacific Coast asked the Justice Department on Tuesday to investigate the role of oil refineries in gas spikes that occurred in May and October even as crude oil prices were declining.
Gas prices jumped last month in California to more than $5 a gallon. Analysts said a web of refinery problems were to blame.
But the senators say a review of California refinery emissions data revealed inconsistencies between the time refineries were actually producing petroleum products and when maintenance shutdowns were publicly reported. They said misleading reports of shutdowns could create a perceived shortage of gasoline.
"It is important to note that because the West Coast refinery market is highly concentrated and isolated, inaccurate information about just one refinery being down can impact gasoline prices for tens of millions of consumers," the senators said in a letter to Attorney General Eric Holder.
They said an analysis by McCullough Research indicates that gasoline inventories were either increasing or remaining at historic five-year averages during the highest price spikes. They said records that only can be gained through subpoena can determine whether various refinery companies violated a Federal Trade Commission rule against "false or misleading public announcements of planned pricing or output decisions." Violations of the rule subject companies to fines of up to $1 million a day per violation.
A trade group representing some refinery companies along the coast, Western States Petroleum Association, did not immediately return calls seeking comment on the senators' request.
The letter seeking the investigation was sent by Sens. Maria Cantwell and Patty Murray of Washington, Ron Wyden and Jeff Merkley of Oregon, and Dianne Feinstein and Barbara Boxer of California, all Democrats.
Gas prices jumped last month in California to more than $5 a gallon. Analysts said a web of refinery problems were to blame.
But the senators say a review of California refinery emissions data revealed inconsistencies between the time refineries were actually producing petroleum products and when maintenance shutdowns were publicly reported. They said misleading reports of shutdowns could create a perceived shortage of gasoline.
"It is important to note that because the West Coast refinery market is highly concentrated and isolated, inaccurate information about just one refinery being down can impact gasoline prices for tens of millions of consumers," the senators said in a letter to Attorney General Eric Holder.
They said an analysis by McCullough Research indicates that gasoline inventories were either increasing or remaining at historic five-year averages during the highest price spikes. They said records that only can be gained through subpoena can determine whether various refinery companies violated a Federal Trade Commission rule against "false or misleading public announcements of planned pricing or output decisions." Violations of the rule subject companies to fines of up to $1 million a day per violation.
A trade group representing some refinery companies along the coast, Western States Petroleum Association, did not immediately return calls seeking comment on the senators' request.
The letter seeking the investigation was sent by Sens. Maria Cantwell and Patty Murray of Washington, Ron Wyden and Jeff Merkley of Oregon, and Dianne Feinstein and Barbara Boxer of California, all Democrats.
So tweedle dumb, and tweedle dee are at it again? They say the same thing EVERY year to make themselves look good, and then nothing happens. I'm not holding my breath. Besides, I can save them a lot of money. Yes, the oil refineries are crooked. Next question?
Let's see here. No budget passed in YEARS. Fiscal Cliff weeks away. Borrowing from my children to the tune of nearly 30 billion a month. More people on food stamps in any time in history. Slow and slowing growth rate. Impending implosion of the welfare state. Skyrocketing delinquency rate on student loans because of no jobs. More federal lands being put off limits to oil and gas exploration. And you two want to investigate some local price fluctuations that may have cost drivers a few million dollars (or maybe not).
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Way to get your priorities straight. Shish. How did a state with as many smart people as we have get two of the top ten dimmest bulbs in the Senate (and that saying something)?
Well, tell those two to just be quiet and go make me a pot pie......
Overheard from the Refinery head office......."WHO is asking for a probe? THOSE two? Re hee heeeeealy? BWAHAHAHAHAHAHA!!!"
Too simple.
 What is drilled here is shipped to foreign markets, and the pricey imported oil is what is refined.Â
 If all the leases were drilled, it likely would have little impact on the price at the pump, but it would add to the argument about not refining the local crude rather than maximizing profits..
These two are always "seeking probes" but they never seem to do much about anything. Let's all keep a close eye on theiir "probing", I'm sure it wont be take alot of our time away.
Murray and Cantwell. Go figure... Two of the most worthless/clueless senators in the building.
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I can't believe I'm even posting this...
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If you two had ANY respect for the people, you'd lobby to open up the national reserves. **it Happens, and all you can do is point fingers. We have more reserves that any country on the planet, and both of you remain defiant in easing the citizens pains at the pump. YOU DON'T CARE!
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How you keep getting re-elected is beyond my comprehension.
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@bobalouie Cause Washington voters want them in office.  GOSH DARN THATÂ
DEMOCRACY.Â
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 @BeHappy  @bobalouie Not really. The Seattle metroplex with it's plethora of people getting free money from the government want them in office. Unfortunately, there are so many of them that those of us who actually produce products don't matter anymore.
Anything to divert attention to their performance.
If the good senators were successful in enforcing a 25¢ across-the-board price reduction across the board on ALL gasoline sales until 2015, I would say the refineries were appropriately punished for their gouging. But we all know that the hand is out behind their backs for oil dollars towards their next election campaign even while they are smiling for the cameras.
This is about more than gouging at the pump. Everytime this happens all consumer goods go up to cover the added expense of transportation. It does little good to make a big deal about it after the fact. What were these senators doing while this was taking place? This isn't the first time this has happened. Wouldn't you think they would at least question this while it was taking place and not wait until after the fact?
This is double hit to consumers - inflated gas prices, followed by expensive, after-the-fact investigations that never seem to put any money back in my pocket. So long as refineries are allowed to profit on this better-to-ask-forgiveness-that-to-ask-permission profiteering, why waste the money "investigating" it every time it happens? If they gouge consumers for $100 million but pay out a $60 million fine - assuming they get caught and assuming the government has the stones to fine them that much money - why in teh hell would refineries ever stop the practice? I mean, I wouldn't.
Waste of tax payers money. Been tried dozens of times, nothing ever becomes of it. I would rather the state go in and use imminent domain laws to take over the refineries and put them back into safe operating condition. All of ours are in horrible condition and really need to be just torn down and new ones put in. The oil companies aren't going to do it though because they know that the oil is slowly disappearing and they don't want to invest any more money into a dieing industry.
 @Blindman You're completely delusional. The Cherry Point refineries have hundreds of highly paid maintenance workers keeping those facilities in top shape.
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We are hardly running out of oil. The United States has the largest proven reserves in the world. Those refineries will still be pumping out crude oil products when your great grandchildren are retired.
Cantwell and Murray...... geez now there is a couple of heavy hitters.... probably have the oil companies shaking in their boots (HUGE NOTE OF SARCASM) And of course they will use this next time they are up for election.... See how they fought the big oil companies and stuck up for our rights.... followed by a series of photo ops with a stern look on there faces pointing their fingers......  give us a break, you are wasting your time, you should be worried about the unemployment rate in your state, and what you are doing to create new jobs!!!
Fine, go ahead and investigate. If they are going to do it though, no more of the typical political posturing and pandering, be serious about it.
As much as I do not want to admit this, but if there is one thing the government should start to regulate it's oil. There are too many 'spikes' in prices for gas and the companies running the show are making billions of dollars in profit each quarter. I agree that a company should be entitled to profits, but when it's in the billions, like $18-$22 billion,per quarter while the general public shuttles around just trying to make ends meet, then I have an issue with it.
 @Landcruiser When the government regulates fuel prices you'll wish for the good old days. $5.00 a gallon gasoline will seem like a bargain.
@Landcruiser The government already did this, in the late 70s and early 80s and it led to oil shortages and long lines at gas stations.
Unless the point of this is to give an automatic rebate to everyone who overpaid for gas then it's a waste of time and money. Time to remove oil as a trade-able commodity from the stock market. You don't see the cost of milk and eggs jumping every time dairy farmers get mad at each other and make the evening news.Â
Another "blue ribbon panel". That should fix it.
It takes time to shut a refinery down safely and then once up to get product on spec, this "probe" is just a waste of time and money for something that nothing will ever come of it.
About bloody time. The oil companies have been price fixing for the past 18 months or so, I suspect, to try to influence the presidential election.
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Sorry, guys. Obama won.
Oil Companies have been price fixing for about 50 years.
Maria Cant vote well you have done this before and nothing has happened save you breath.
Well if the anointed one didn't make it so difficult to build refineries, there might not be a shortage.
Yawn.....this story gets brought up every few months but nothing ever happens. Nothing to see here, move along......
Like this will do any good. Congress does not want to mess with oil companies. They like to nice dollar contributions. Also most congress personell own a lot of oil stock or investments in oil companies. This is just a waste of our money by Murray and Cantwell to make them look good.