A friend has just sent me a
link to a KCRA news story headlined "Chevron Memo Raises Suspicion." The story, datelined May 5, Sacramento, starts "A Chevron memo is raising suspicion that oil executives intentionally reduced refining capacity in an effort to boost profits. The 1995 memo, obtained by Consumers Union, reads:
"If the U.S. petroleum industry doesn't reduce it's refining capacity, it will never see any substantial increase in refinery profits."
In the last 20 years, 18 of California's 32 refineries have shut down. The industry is now seeing record prices and profits at the pump.
The Consumers Union Report, entitled "Debunking Oil Industry Myths and Deception: The $100 Billion Consumer Rip-Off" can be found here. Some of its highlights:
Major oil companies have
♦ achieved more than $100 billion in excess profits from
2000 to 2005 as a result of anti-competitive
practices;
♦ strategically underinvested in refinery capacity to
tighten supplies and gain market power over gasoline
prices;
♦ carried out a deceptive and misleading PR campaign
telling a huge profit story to Wall Street and a small
profit story on Main Street;
♦ sought to blame factors other than their own behavior
for higher consumer gasoline prices.