NOT FINE AT REFINERIES

Remember the Enron shennanigans?

Domenici Asks BP About Refinery Capacity
May 29, 2007 (UPI)

WHO
Sen. Pete Domenici, R-N.M., ranking member, Senate Committee on Energy and Natural Resources; BP America (Robert Malone, US Chairman/President), Deutsche Bank (Paul Sankey, managing director),
How refinery costs figure into gas prices. (click to enlarge)
WHAT
Citing Sankey’s testimony that 2 BP refineries are running at only 50% capacity, Domenici wrote to Malone demanding to know why.

WHEN
Letter sent last week, following Sankey’s testimony. Domenici requested dates of full operation.

WHERE
The 2 refineries: Texas City, Texas, and Whiting, Indiana.
Alternate view.
WHY
- Inefficient refinery performance limits the supply of gasoline getting to market, driving up price. US average price: ~$3.20.
- Other factors affecting gas price: global oil supply and competition for supplies from emerging economies.
- The BP refineries are 2 of its largest; The Texas city refinery, site of an explosion that killed 15 and injured 170 2 years ago, is the largest in the US.
- Domenici requested full updated disclosure, including when the refineries will operate at full capacity and safety info on Texas City.

QUOTES
- Domenici: "While global political instability is beyond its control, BP is capable of and should address the present refinery issues within the company…These are two of the five largest refineries in the United States, and the American people rely upon the gasoline from these facilities…"
- AAA Daily Fuel Gauge Report: $3.20/gallon nat’l avg for regular unleaded, $2.91/gallon nat’l avg for diesel.