Reply #29: Then why are they and other oil cos shutting down "WILDLY PROFITABLE" [View All]

[radwriter0555]

oil fields?

http://www.consumerwatchdog.org/utilities/nw/nw004257.php3

HORSLEY: Oil production in Kern County is declining, but state officials say there's at least 20 years worth of oil left in the ground there. In fact, ChevronTexaco plans to increase its drilling in the region. Oregon Senator Ron Wyden, whose constituents are also paying more than $2 a gallon for gasoline, has asked the Federal Trade Commission to investigate the planned refinery shutdown. California's attorney general is also investigating. But Tom Dressler, of the attorney general's office, says this may turn out to be a problem that law enforcement can't solve.

HORSLEY: In response to the criticism, Shell says it's willing to sell the Bakersfield refinery, but that so far it has not received any credible offers. California Senator Barbara Boxer disputes the company's claim that the refinery is not economically viable. She points to internal documents showing the plant brought in more money per gallon for Shell than seven other refineries.

http://releases.usnewswire.com/GetRelease.asp?id=28449

SANTA MONICA, Calif., April 6 /U.S. Newswire/ -- The Foundation for Taxpayer and Consumer Rights today released internal Shell documents showing the oil refiner is set to close and demolish its Bakersfield refinery despite the fact the site had the biggest refinery margins, or profits per gallon, of any Shell refinery in the nation as of yesterday.

Shell had claimed it was not economically viable to keep the refinery open and has refused to put it up for sale. Bakersfield supplies 2 percent of the state's gasoline and only 13 refineries feed California's tight gasoline supply (down from 37 in 1983).

An April 5th internal Shell document released today by FTCR shows that Bakersfield's refining margin at $23.01 per barrel, or about 55 cents profit per gallon, topped all of Shell's refineries in the nation. That means, for example, that margins are 36 cents per gallon higher in Bakersfield than in Port Arthur, Texas. The internal document comments under the category of refinery margins "Wow."