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View Diary: California's Gasoline Price Surge Explained (120 comments)

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  •  Oil refineries (0+ / 0-)

    Cannot realistically operate like peaker plants.  They take far too long to start up.  But California could maintain a reserve of gasoline, jet fuel, and diesel fuel that is released during supply disruptions.

    •  Agree. I was thinking along the lines of a plant (0+ / 0-)

      that idles along at a small financial loss or break-even capacity. When the private sector fumbles the ball and prices get too high, the "public utility" refinery can ramp up production and boost supply.

      I can imagine two refineries (NorCal and SoCal) operated as a co-op by the State and local governments to provide fuel for public agency vehicles. Without the need to pay dividends to shareholders, it could possibly supply fuel to cities and counties at competitive prices, while still maintaining reserve capacity.

      But it might be easier for the government to pay  privately-owned refineries for reserve capacity and inventory, in the form of tax breaks.

      Have you noticed?
      Politicians who promise LESS government
      only deliver BAD government.

      by jjohnjj on Fri Oct 12, 2012 at 02:14:18 PM PDT

      [ Parent ]

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