We have on one hand, what the Liar-n-Thief prez sez:

"... let me remind people that these high gasoline prices are caused by primarily three reasons: One, the increase in the price of crude oil.

"Secondly, there's increasing demand.

"And, thirdly, we're switching fuel mixes. The summer fuel mix is different from state to state, and is different from what is being used in the winter. And, therefore, the combination of these creates higher gasoline prices."


President Bush Nominates Rob Portman as OMB Director and Susan Schwab for USTR

Rose Garden
Office of the Press Secretary
April 18, 2006
9:27 A.M. EDT


an analysis from the Associated Press:

AP Analysis: Firms Crimping Oil Supplies

By JEFF DONN, Associated Press Writer
9:13 PM PST, November 25, 2006

Why would Shell Oil Co. simply close its Bakersfield refinery? Why scrap a profit maker?

The rumor seemed to make no sense. Yet it was true.

The company says it could make more money on other projects. It denies it intended to squeeze the market, as its critics would claim, to drive up gasoline profits at its other refineries in the region.

Whatever the truth in Bakersfield, an Associated Press analysis suggests that big oil companies have been crimping supplies in subtler ways across the country for years. And tighter supplies tend to drive up prices.

The analysis, based on data from the U.S. Energy Information Administration, indicates that the industry slacked off supplying oil and gasoline during the prolonged price boom between early 1999 and last summer, when prices began to fall.

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