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Credit cards cut off gas purchases  
By IEVA M. AUGSTUMS, Associated Press

CHARLOTTE, N.C. -- So you're at the gas station filling up your vehicle, and without warning the gas pump shuts off. What? The tank isn't full, and you know your credit card isn't over its limit.
  
"Using my Visa card, I commonly hit a limit and I would be standing there scratching my head," Shawn Bloomfield, who pumps premium gas into his SUV, said from his home in Allentown, Pa. "I would always assume it is the gas station setting a limit on how much gas I could purchase. It felt like a ration scenario."

As the price of gasoline continues to rise, rules to prevent credit card fraud at the nation's pumps are confusing consumers who just want a full tank of gas.

Caps on transaction amounts -- or the total dollar amount of gas a customer can pump into their car -- are limiting some drivers of gas-guzzling vehicles.

"When I go to the gas station I now have to use two credit cards just for one tank of gas," said Paul Brisgone of Oxford, Pa. "Kind of defeats the convenience of pay-at-the-pump."

Brisgone, a field operations manager for a telecommunications company, said he alternates between three different credit cards -- two Visa and one MasterCard -- when filling up the 32-gallon tank in his Ford F-150 pickup.

"When I can go 400 miles a day, it inconveniences me if I need a full tank of gas and can't get one," Brisgone said.

Credit card companies say the policies, which aren't new, are designed to ensure that merchants and consumers are protected from fraudulent transactions that could occur at a gas pump.

When a customer uses their credit card at a cardholder-activated terminal, such as a gas pump, the transaction is authorized without knowing the final bill of sale.

Typically, consumers who use their credit card are not liable for any fraudulent purchases, and gas merchants are not liable either.

But credit card companies have established a protective layer by setting caps on how much gas a consumer can pump at any one given time.

That means in the event of any fraud, "the merchant is protected from bearing the cost of the fraudulent transaction," said MasterCard spokeswoman Joanne Trout.

But only up to a certain amount.

For MasterCard customers, it's $75. Visa and Discover users have a $50 pay-at-the-pump limit. Transaction limits vary for corporate card holders and American Express users.

Not all gas stations have to abide by the cap. And there are no limits if a customer goes inside and pays with their credit card at the counter.

The caps went unnoticed when gasoline prices were low.

"We get more calls, questions, when gas prices increase," said Visa spokeswoman Rhonda Bentz.

The average price of regular unleaded gasoline increased from $1.50 a gallon at the start of the decade to $2.28 a gallon in 2005, according to the American Automobile Association.

Today, gasoline prices are topping $3 a gallon.

"Yes, it's an inconvenience," said Bloomfield, who often reaches his $50 limit when filling up his Nissan Pathfinder. "I guess you could say it's a necessary inconvenience for more secure transactions."

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"Yes, it's an inconvenience," said Bloomfield, who often reaches his $50 limit when filling up his Nissan Pathfinder. "I guess you could say it's a necessary inconvenience for more secure transactions."

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Credit ceilings curb pay-at-pump sales
Irate motorists find $50 won't fill gas tank, but triggers limits on cards  
  
By ALAN WECHSLER, Business writer
First published: Thursday, June 21, 2007

ALBANY -- Jim Boyle of Delmar was first aware of the problem when he tried to fill up his Toyota Highlander and a gas can for his lawn mower. The Hess pump stopped at $50 and wouldn't give him more fuel.
  
The Hess clerk blamed his credit card, Discover. Discover later told him it was the gas station that had put the limits in place.

Turns out they both were right.

For years, credit card companies have limited the amount they are liable for when fuel customers use pay-at-the-pump options to fill up. That means if someone uses a stolen credit card to buy $75 worth of fuel at the pump, Discover will be responsible only for the first $50. (This is not true, however, for a credit-card purchase made at the register).

Until recently, this wasn't much of an issue. But with gas costing more than $3 a gallon, it's now easy for customers to reach $50. And with rising credit card thefts, gas stations have responded by limiting how much gas you can put on the card during a fill-up.

And some drivers aren't happy about it.

"We have people coming in every day, red-faced, angry," said Mac Brownson, owner of a Mobil station on Central Avenue in Albany that has such limits.

Brownson, who also is president of the Gasoline and Repair Shop Association of New York Inc., said the decisions are made at the Exxon Mobil corporate office. The corporate office then directs the company that handles the processing of credit cards to limit the pump purchases.

Because stolen credit cards were used in the past year at his station, Brownson said his processor has required that pay-at-the-pump users also type in their ZIP code. That outraged even more customers -- some thought their buying habits were being monitored, others had a company credit card and didn't know the ZIP.

After Brownson complained to the processor, the ZIP code requirement was discontinued. Now, he tells his employees to watch out for customers who might be trying to use a stolen credit card to sell gas to other customers for cash. He said that has happened twice in two weeks.

Not every station has seen the credit card limits. Todd Clemmer, manager of the Mobil station on Wolf Road in Colonie, said he has rarely had a problem with fraudulent purchases.

But Donna Angus, manager at the Hess station on Route 9 in Latham, said customers often complain about it there. "They get very angry," she said. "They think I'm stopping them from pumping gas."

According to published reports, credit card fraud limits vary. For MasterCard, it's $75; for Visa and Discover, it's $50. Corporate rates are higher, and truck drivers can get waivers.

Mike Johnson, who was filling up his SUV in Colonie on Wednesday, said he has never experienced the pay-at-the-pump limit, but some of his relatives have.

"Everybody gets bothered by it," he said. "It's irritating. They're putting a stipulation on how much gas you can get."

Boyle, the Delmar buyer with the gas can, found a way to solve his problem. The retired information technology manager simply reset the machine and swiped his card a second time.

"It didn't take a rocket scientist," he said. Wechsler can be reached at 454-5469 or by e-mail at awechsler@timesunion.com.

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Brownson, who also is president of the Gasoline and Repair Shop Association of New York Inc., said the decisions are made at the Exxon Mobil corporate office. The corporate office then directs the company that handles the processing of credit cards to limit the pump purchases.

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Refineries not running at full tilt

By Barbara Hagenbaugh, USA TODAY
WASHINGTON — U.S. refiners are producing far less gasoline than they are capable of making because of planned and unplanned maintenance.
That has led to a greater reliance on imports and has made U.S. gasoline supplies vulnerable to further disruptions, such as hurricanes, during the busy summer driving season.

U.S. refineries churned out 87.6% of the gasoline that they were capable of producing last week, down from 89.2% the week before and 5.7 percentage points below a year ago, the government said Wednesday.

The drop came at a time when gasoline production is usually rising to meet summer demand. But aging refineries, continued maintenance following hurricanes in 2005 and greater complexity in refining is forcing refineries to shut down lines.

"U.S. refineries are old," says Bruce Bullock, head of the Maguire Energy Institute at Southern Methodist University. Firms "are having to maintain (refineries) more, and they are having more unplanned outages."

Examples:

•Valero closed part of its refinery near Sunray, Texas, on Monday to fix a mechanical problem.

•BP recently brought back its refinery in Oregon, Ohio, that was partially shut down in mid-April to fix equipment damaged in a power outage.

•Production at an ExxonMobil refinery in Torrance, Calif., was shut down briefly in March after an opossum caused an electrical outage.

Even so, U.S. firms are producing record amounts of gasoline in 2007 because of expansions at existing refineries, American Petroleum Institute economist Ron Planting says.

"We have added the equivalent of a new refinery every year for the last 10 years," he says.

But Rep. Bart Stupak, D-Mich., says he suspects the oil companies are either limiting production or misreporting the numbers to lift the price at the pump.

"All this logic, all these excuses, the math doesn't add up," Stupak says. "The only math that adds up is the adding on of record profits."

Analysts at the Energy Department's Energy Information Administration in a report this month observed that with refinery profit margins high, "Refiners have a strong economic incentive to run their units at the highest possible rates." That suggests, "Unplanned refinery outages and extended maintenance are the key drivers" of the shutdowns, they wrote.

Although gasoline prices have fallen recently, EIA analysts have said they expect prices to increase again later this summer. Wednesday, the U.S. average for regular was $2.998 a gallon, according to AAA.

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A guest presents her gas receipt to Bakers Square President Tim Casey while Village Inn President Jeff Guido serves her pancakes at the company's Denver restaurant. Through July 31, 2007, both restaurant chains are offering "All You Can Eat" pancakes for the price of one gallon of gas, to guests who present a gas receipt. This first-time offer is intended to provide guests some relief from high gas prices during peak summer driving season. (PRNewsFoto/VICORP Restaurants, Inc.)

DENVER, CO UNITED STATES

  


    DENVER, June 21 /PRNewswire/ -- ("First Day of Summer") -- VICORP
Restaurants, Inc., the owners of Village Inn and Bakers Square, today
announced a first-time offer to provide customers some relief from high gas
prices in time for peak summer driving season. Through July 31, 2007,
participating restaurants are offering "All You Can Eat" pancakes for the
price of one gallon of gas, to customers who present a gas receipt. At this
writing, $3.06 is the national average per gallon of self-serve regular
and, while gas prices have dropped in some cities, the latest numbers are
not expected to portend any dramatic price drops. Gas prices are still up
93 cents since the start of 2007.
    (Photo: http://www.newscom.com/cgi-bin/prnh/20070621/AQTH005)
    As part of the special offer, Village Inn and Bakers Square Restaurants
will also be distributing fuel saving tips to customers through a
partnership with http://www.GasBuddy.com, the internet site that monitors
prices at 900-thousand gas stations nationwide, and inviting them to visit
the website to find gas at the best price in their town.
    "We felt it important for Village Inn, as a family-restaurant, to help
take a bite out of rising gas prices for the many of our customers taking
to the highways with their families this season," said Jeff Guido,
President of Village Inn Restaurants. "Bad news at the gas pump is now good
news for pancake-lovers, as we continue to satisfy our guests' hunger for
life's simple pleasures," added Bakers Square President Tim Casey.
    GasBuddy founder and Web entrepreneur Jason Toews applauded the
innovative offer. "We commend Village Inn and Bakers Square for helping to
educate consumers on how to save fuel as summer travel season gets
underway," said Toews.
    The "Top Ten Fuel Saving Tips" from GasBuddy that Village Inn and
Bakers Square Restaurants will be distributing broadly to consumers,
include:
    1.  Avoid High Speeds
    2.  Do Not Accelerate or Brake Hard
    3.  Keep Tires Properly Inflated
    4.  Use A/C Sparingly
    5.  Keep Windows Closed
    6.  Service Vehicle Regularly
    7.  Use Cruise Control
    8.  Avoid Heavy Loads
    9.  Avoid Long Idles
    10. Purchase a Fuel Efficient Vehicle
    The special "All You Can Eat Pancake" offer harkens back to Village
Inn's heritage, which dates back to 1958, of hearty, wholesome breakfasts
that included famous buttermilk pancakes, as well as lunch and dinner
entrees. In the early 80s, Village Inn Pancake House changed its name to
VICORP Restaurants, Inc. and acquired Bakers Square which also offers a
full menu complimented by award-winning pies. Today, the privately-held
VICORP, headquartered in Denver, has 409 restaurants system wide in 25
states and more than 12,000 employees nationwide.
    For details and updates on the "All You Can Eat Pancakes" priced per
gallon offer, customers are invited to stop in at their local restaurants
or to visit http://www.villageinn.com and http://www.bakerssquare.com.

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Gallon of gas dips below $3
AAA Fuel Gauge data shows the nationwide average retail price for a gallon of regular is $2.998.
By Chris Zappone, CNNMoney.com staff writer
June 20 2007: 1:35 PM EDT


NEW YORK (CNNMoney.com) -- The nationwide average retail price for a gallon of regular gasoline fell to $2.998 Wednesday, according to AAA. Tuesday the price stood at $3.002, according to the motorists' association.

The average price hit a record high of $3.23 a gallon at the end of May and has since fallen roughly 8 percent.

Problems with refinery production levels helped drive the cost of gas up around Memorial Day, even uncoupling it from price of oil that it traditionally tracks, according to Geoff Sundstrom, spokesman for AAA.

"We expect gas numbers to decline as refineries get their act together," Sundstrom said.

"Psychologically, we think it's important for the nation," Sundstrom said of the easing prices that had many households concerned about the record highs in May.

"The fact that we've gone back under $3 is a shot in the arm to the economy," he said, who noted that the instant knowledge of crude and gas futures tends to affect pricing even at the retail level.

"It's a telltale sign that the rally has peaked,"said Stephen Schork, principal of the industry newsletter the Schork Report. "The sell off in crude is impressive and expected. The sell off in gasoline is more impressive."

Shork said the EIA numbers showing refineries running at 87.6 percent capacity should have generated a bullish reaction in gas prices.

"We simply have no ability to make gasoline," Shork said. "If you can't get a bull reaction on a report like this odds are we're in for further weakness in gas prices through the summer."

Shares trended lower Wednesday for major oil producers BP Plc (Charts), Chevron (Charts, Fortune 500), ExxonMobil (Charts, Fortune 500) and ConocoPhillips (Charts, Fortune 500).

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Oil tumbles on big jump in inventories
Prices fall after crude, gasoline supplies post surprise increase ahead of summer driving season.
By Keisha Lamothe, CNNMoney.com staff writer
June 20 2007: 4:53 PM EDT


NEW YORK (CNNMoney.com) -- Oil prices sank more than $1 Wednesday after a government report said supplies of crude and gasoline jumped more than Wall Street had expected.

U.S. crude for July delivery sank 91 cents to $68.19 a barrel on the New York Mercantile Exchange. Oil had traded down 21 cents just prior to the report's release.

In its weekly inventory report, the federal government's Energy Information Administration said crude stocks jumped 6.9 million barrels versus analysts' forecasts for only a small change.

"Crude was much higher than expected. That was kind of a shock and the market is trading on the shock right now," said Phil Flynn, a Chicago-based senior market analyst at Alaron Trading.

Gasoline supplies, closely watched in the summer driving season, climbed 1.8 million barrels last week. Analysts were looking for a 1-million-barrel rise, according to Reuters.

Distillates, used to make heating oil and diesel fuel, also rose by 100,000 barrels, but was less than the 800,000-barrel increase analysts expected.

A decline in refinery activity also supported prices. EIA said refineries ran at 87.6 percent capacity, down from last week's 89.6 percent.

The report comes as traders have been focused on whether struggling U.S. refiners could lift supplies of gasoline during the peak summer demand season, while also reviving low heating fuels stocks, Reuters reported.

"We are swimming in crude right now and the real problem is that were are not swimming in enough gasoline," Flynn said. "Refineries are also having a hard time, which means we could see higher gasoline prices."

Energy Secretary Samuel Bodman said he's confident refining activity will jump back above 90 percent shortly. He said emergency federal provisions to spur that, like relaxing environmental standards, were probably not needed.

"There's reason to believe some of these refineries will come back online," said Bodman, speaking to reporters at a renewable energy finance conference in New York. "They have enormous incentive to do it," he said, alluding to the high profits currently enjoyed by the refining industry.  

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Senate votes for 35 mpg fuel average
Higher standard would apply to cars, SUVs, pickups
BY H. JOSEF HEBERT AND KEN THOMAS
The Associated Press

   WASHINGTON — The Senate voted Thursday to require average fuel economy of 35 miles per gallon for new cars, pickup trucks and SUVs by 2020, raising efficiency standards that have not changed significantly for nearly two decades.
   The fuel economy measure was added to a broad energy bill without a roll call vote even as senators were holding a news conference announcing the compromise.
   Republicans earlier blocked Democratic efforts to raise oil taxes by $29 billion and use the money to promote renewable fuels and other clean energy programs.
   Democratic leaders hoped to complete the energy bill Thursday night, but senators close to the auto industry began an effort to derail the entire bill.
   “We will be continuing to oppose it,” said Sen. Carl Levin, D-Mich., “This is not over by any stretch.”
   In the House, the issue is not resolved. A draft energy bill does not include provisions on auto fuel economy, although Rep. Edward Markey, D-Mass., is expected to try to add one when the legislation comes to the floor in coming weeks.
   Rep. John Dingell, D-Mich., a longtime protector of auto industry interests, said his House Energy and Commerce Committee will not address the matter until fall as part of global warming legislation.
   The Senate legislation for the fi rst time would establish a single fuel economy standard applicable to not only cars, but also SUVs and pickups. which currently have to meet less stringent requirement.
   Fuel efficiency requirements would vary for different classes of vehicles based on weight and size. But manufacturers would be required to meet an overall fleetwide average of 35 mpg.
   “It closes the SUV loophole,” declared Sen. Dianne Feinstein, D-Calif., referring to current requirements that allow much less stringent fuel efficiency standards for SUVs and pickup trucks than for cars. “This is a victory for the American public.”
   The compromise, approved without floor debate, was crafted over several days behind closed doors with the aim of heading off attempts by senators sympathetic to the auto industry to press a less stringent proposal.
   President Bush, who was in Alabama visiting a nuclear power plant, said Congress must “be realistic” about the energy legislation. The White House opposes having Congress mandate a specific mileage number for auto fuel economy. Bush believes the Transportation Department should be given increased fl exibility to set a standard.
   Automakers are currently required to meet an average of 27.5 mpg for cars and 22.2 mpg for SUVs and small trucks. The car standard has not changed since 1989, though the truck requirements have been increased slightly by the Bush administration.
   The measure tacked onto the energy bill would require a 35 mpg fleet average — including SUVs and pickup trucks — by 2020, and require that automakers make half of their vehicles capable of running on 85 percent ethanol fuel by 2015.
   The compromise removed a requirement that automakers would have had to meet an additional 4 percent increase per year for 10 years after 2020. The ethanol fl exfuel requirement also would have been three years longer.
   Automakers had strongly opposed the 4 percent requirement, saying it was not achievable and would have required them to make vehicles with a fleet-wide average of 52 mpg by 2030.
   “This compromise is a signifi cant step to keeping this legislation moving forward,” said Sen. Ted Stevens, R-Alaska.
   Senate Majority Leader Harry Reid, D-Nev., said it was important that some version of the mileage increase be included in the broader energy bill, even if the requirements on automakers were eased a bit under the compromise.
   Reid said he hoped to have the bill approved by the end of today.
   The auto fuel economy issue has been one of the thorniest facing lawmakers.
   Auto industry leaders came to Capitol Hill several weeks ago saying they could not meet the kind of fuel use increases being contemplated. Industry executives and car dealers visited Senate offices this week in last-minute lobbying and urged senators to approve a less stringent measure.  

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New-age autos may use less, different fuel
BY H. JOSEF HEBERT The Associated Press

   WASHINGTON — The cars, SUVs and pickups people will buy in the years ahead are likely to use less fuel, and many will rely on ethanol or household electricity instead of gasoline.
   The energy legislation pushed through the Senate this week provides a road map to the future, demanding higher automobile fuel economy, mandating huge increases in ethanol as a motor fuel and supporting more research into building “plug-in” hybrid-electric vehicles.
   While Senate Republicans complained that the bill does nothing to increase domestic oil production, Democrats said that’s because the nation must move energy policy away from its heavy reliance on oil.
   The House is preparing its own version.
   The Senate bill requires automakers to increase fuel economy to 35 miles per gallon, about a 40 percent increase over what cars, SUVs and small trucks are required to achieve now. It would lump all the vehicles under a single regulation, but also give manufacturers flexibility so large SUVs wouldn’t have to meet the same requirements as smaller cars.
   It requires a yearly increase of ethanol production to 36 billion gallons a year by 2022, a sevenfold increase from today. By 2015, half of the new vehicles offered to buyers — as many as 10 million — will have to be capable of running on 85 percent ethanol, biodiesel or some other alternative energy source.
   And for the first time, the president must find ways to cut oil demand by 20 percent of what it is expected to be in 2017 — a target President Bush has embraced — and attain further reductions after that. Gasoline demand is expected to grow 13 percent to 261 billion gallons a year by 2017 without some fuel-saving measures.
   But will auto showrooms provide the same selection of vehicles? Will they be as big, as powerful, as safe?
   “I would expect them to look a lot like they do today, the same size, the same acceleration and the same or even better safety,” says David Friedman, director of the clean vehicles program at the Union of Concerned Scientists.
   He maintains they will have better technology, better engines, more efficient transmissions and stronger aluminum bodies. They’ll cost a little more but use much less gasoline.
   “The goal is to replace fossil fuels with alternative fuels and use conservation,” said Sen. Maria Cantwell, D-Wash., who was involved in the discussions on many of the auto fuel economy and motor fuel issues that ended up in the bill.
   What has changed from a few years ago, she said, is there no longer is “a fear factor that you’re going to be in itty-bitty cars” if the government requires automakers to make more fuel-efficient vehicles.
   In addition to making conventional cars more fuel-efficient, the bill seeks to boost research into use of lithium-ion batteries — like those used in laptop computers and cameras — in vehicles.
   Should ways be found to make them more durable in a vehicle environment, cars could be plugged into an electric socket at home, relying only rarely on gasoline, says Friedman. Some studies have estimated the fuel cost — mostly the cost of electricity and a small amount of gasoline — would be equivalent to about $1 a gallon, said Cantwell.
   Automakers, lobbying hard against the fuel economy provision in the Senate bill, expressed continued concern Friday about their ability to meet the new requirements without changing the mix of cars they will be able to provide in the showrooms of 2020.
   “There’s no way you can get those numbers without a dramatic shift in consumer choice,” insisted Mark LaNeve, General Motors’ vice president of North America sales, service and marketing.
   “We don’t know how it’s attainable.”
   Eric Ridenour, chief operating officer at Chrysler Group, where three of every four vehicles are built on truck frames, said the company will have to decide whether to keep selling some of its larger vehicles.
   “Clearly, the larger family-sized vehicles will be the ones that will be most at risk,” said Ridenour. “The end result will be lighter, smaller vehicles in general.”
   He envisioned generally smaller cars and more of them running on diesel.  

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It would lump all the vehicles under a single regulation, but also give manufacturers flexibility so large SUVs wouldn’t have to meet the same requirements as smaller cars.

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Boycotting gas stations may help cut prices

   The gas boycott of May 15 did not work! So how about trying to boycott a brand of gas? Start with Exxon/Mobil the week of July 1-7. If they’re unable to sell gas, they may have to cut prices. On July 8-14, boycott Citgo; on the July 15-21 week, boycott Sunoco; and on July 22-28, boycott Gulf.
   Gas stations will need to get rid of the gas to keep their allotment. Reducing demand for gas can help. Do it by keeping vehicles tuned, tires properly inflated, not racing from one red light to the next, turning it off at the coffee shop; walking inside a place instead of waiting at the drive-up.
   TAD BONIEWSKI
   Scotia

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Froma Harrop Say no to NOPEC, impose gas tax
Froma Harrop is a nationally syndicated columnist.

   There’s a bill floating around that would let our government sue OPEC members for driving up the price of oil. Surprise, surprise, it passed both houses of Congress. President Bush has vowed to quash the brilliantly named “NOPEC” (the No Oil Producing and Exporting Cartels Act), but the appearance of sticking it in OPEC’s eye has such bipartisan appeal that the measure may enjoy a veto-proof majority.
   This could be an emotionally satisfying way to lash out at $3-a-gallon gasoline, but it’s not energy policy. NOPEC would accomplish nothing except perhaps ignite a trade war. America’s relationship with foreign oil producers is fundamentally sick. Time to move out of the house, once and for all.
   The way to get OPEC out of our lives is to stop buying so much oil, and the way to do that is to force its price up, up, up. At a certain pain point, Americans will choose fuel-efficient cars, houses and appliances — and they will turn to wind, solar and other clean-energy sources. High oil prices make these alternatives more competitive.
   That’s not to dismiss the legal arguments behind NOPEC. The Organization of Petroleum Exporting Countries is indeed a conspiracy to fix prices. U.S. antitrust laws have been used to break up other international cartels for such products as computer chips and vitamins. Why couldn’t we do the same with oil?
   OPEC claims, and American courts have ruled, that its members are acting as sovereign governments (rather than companies) and therefore not subject to our antitrust laws. NOPEC, however, would empower the Justice Department to sue OPEC members under the Sherman Antitrust Act — and seize their U.S. assets to pay for damages.
   One thing Americans don’t need right now is a ratcheting up of international tensions. Furthermore, OPEC members could retaliate by removing their investments from the United States. And they could replace oil sales to the United States with increased business in energy-hungry China and India.
   But Americans truly don’t need more babying by their politicians over the price of gas. Their devotion to low gas prices is responsible for our current humiliating role as supplicant to countries that pay terrorists to attack us. Rather than wait for the sheiks to raise the price, we should be doing it ourselves through gas taxes. That way, we could keep the extra revenues while providing the incentives to unhook ourselves from foreign oil.
   This is hardly a new idea. The third party presidential candidate H. Ross Perot proposed a 50-cent-a-gallon tax way back in 1992. Last fall, N. Gregory Mankiw, former chairman of Bush’s Council of Economic Advisers, called for a $1-a-gallon hike in gas taxes for reasons enumerated.
   The new revenue could be used for health care, cutting the national debt or whatever. Actually, the government could throw the money into the Potomac, and the tax would still make sense because it would push Americans to use less gas and develop other energy sources. It could even end the need to raise mileage standards in vehicles. The higher cost of filling up would automatically create a bigger market for fuel-efficient cars.
   In the past, when oil prices approached levels that would encourage conservation and a move to alternatives, the Saudis would ramp up production to lower the cost and thus keep us addicted. And so why does Congress now want to do this for them?
   OPEC is not our friend or partner, and so let’s end this bad marriage. Trying to make it behave more to our short-term liking hurts America’s long-term interests. We need a divorce, and only an intelligent energy policy will get it rolling.  

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Drivers set gas
consumption record
   WASHINGTON — Record-high prices for gasoline this year haven’t dampened U.S. drivers’ demand for fuel, an industry trade group said Wednesday.
   Drivers consumed a record 9.2 million barrels, or 388 million gallons, of gasoline on average every day during the first half of the year, up 1.5 percent from last year’s levels, the American Petroleum Institute said in its midyear review of fuel statistics.
   While daily domestic gasoline production rose 3.4 percent to a first-half high of 8.9 million barrels, that wasn’t enough to meet demand.
   Gasoline imports rose to a record of more than 1.3 million barrels per day in the second quarter after stalling in the first quarter, the trade group said.
   The industry was plagued with a series of unplanned refinery outages this year that have caused gasoline inventories to run below year-ago levels. But the API said capacity expansions at existing refineries helped the industry boost production levels.
   Earlier this week, a draft report by the National Petroleum Council, an industry advisory group to the federal government, said conventional crude oil supplies won’t keep up with growing global demand in the next 25 years.

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ALBANY
Electric cost hike puts NY near top of list
BY JASON SUBIK Gazette Reporter

   New data from the federal government shows that the cost of electricity in New York state increased by 12 percent between March 2006 and March 2007, a rate a little more than twice the national average.
   The Energy Information Administration, which tabulates energy statistics for the U.S. Dept. of Energy, is reporting that the average cost per kilowatt hour in New York has gone from 12.99 cents in March 2006 to 14.54 cents in March 2007, while the national average rose from 8.39 cents per kwh, to 8.77 cents.
   The New York Business Council, a lobbying organization for businesses throughout the state, blames the high cost on lack of in-state electricity generation capacity and an overreliance on natural gas, as opposed to cheaper coal energy.
   “New York state does not have enough generating capacity to sustain a supply of reliable, affordable and secure electricity,” Business Council Communications Director Matthew Maguire said. “We’ve been on the wrong end of this [list] for quite some time.”
   New York’s residential electricity costs were even higher — 16.59 cents per kwh in March, a 5 percent increase from the previous year and 62 percent above the national average. Commercial users paid 14.77 per kwh and industrial users paid the wholesale price of 8.47 cents per kwh.
   The New York Independent System Operator, which manages New York’s deregulated electricity transmission grid, estimated in June that New York should have 16.5 percent reserve electricity capacity this summer, due in part to a peak demand drop from a cool summer.
   The NYISO expects that the total availability of electricity to the bulk electricity grid will be 43,771 megawatts: in-state generation of 39,770 MWs, 2,921 MWs of out-ofstate supply committed to New York and 1,080 MWs of special case resources. The NYISO forecasts summer 2007 peak electricity usage to reach 33,447 MW, almost 500 MW lower than last year due to cooler anticipated weather.
   Officials with the New York State Energy Research and Development Authority estimate that prior to New York’s deregulation of its electricity grid in 1996, the state had about 28 percent reserve capacity. After deregulation, Gov. George Pataki and the state legislature authorized legislation to fast track the siting of power plants throughout the state. That program expired in 2003.
   “There were a number of projects that were approved under the old law that were never built,” NYSERDA President Paul Tonko said.
   NYSERDA estimates that power plants capable of producing 4,000 MWs of additional electricity capacity were approved under the “Article 10” fast track program that have not been constructed.
   Business Council President Kenneth Adams has argued that Gov. Eliot Spitzer should ease carbon dioxide emissions standards and the Republican-led Senate should loosen its stance on more nuclear power in order to facilitate a compromise to reauthorize Article 10.
   “Obviously as we encourage new production that should be in keeping with the environmental goals of the state, so as to produce clean energy — I think they go hand in hand — and the incentives in a reauthorized outcome should encourage that,” Tonko said.
   The states with more expensive power included water-isolated Hawaii, 18.73 cents per kwh, and New York’s neighbors to the east: Connecticut, at 16.41 cents, and Massachusetts, 15.13 cents.  

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Quoted Text

George,
I realize that high gas prices and the taxes on it is one of the issues that you stated you were going to work on.  I would first of all like to thank you ahead of time for what, no doubt, is going to be a difficult fight.

I was wondering if there was a way, as you start to plan your movement towards cutting some of the taxes on gas, that you could supply me (and the others I would share this with) with the current burden of taxes that are placed on a gallon of gas at the New York State level.  

I would like to know the following information, if you are able to get it.  The amount of each tax, the reason for the tax, and if you can find out in your work, how much money has recently come in for each tax and if it was actually applied to what it was meant for.

It's time for Extreme Makeover, Assembly Edition and we've got the right person on the job.  

Thanks again and I hope that things can finally start to turn around in this state government.

Sincerely,

Kevin T. March
163 Princetown Road
Rotterdam, NY 12306

cc: http://www.rotterdamny.info/b-general3/m-1182081588/s-0/

Quoted Text

Mr. Tedisco,

I apologize for taking so long to get back to you on this, however, I was just thinking about these issues again today.  I did send an e-mail to my new Assemblyman, Mr. Amedore today, requesting information on the level of taxes on gasoline at the New York State level.  Please find a copy of this attached.  Also, I realize that you cover the western portion of Schenectady County, as well as other areas.  I hope that you will work along with Mr. Amedore on these issues.  I also realize that this information may not be easily available to Mr. Amedore in short return and hope that you would help him to bring together this information for release to the public.

Also, in the reply to me which is below, you stated that you would be able to send me a copy of the Assembly Republican's "Road to Reform."  While I would appreciate a copy of this, I request that you do not mail one to me.  I do request, if possible, you send me a copy of this via e-mail or advise where on the internet I can go to review a copy of this.

My reason for asking you to not send me a copy of this via the postal service is this is one way that I really think that the government of this country, at every level, can significantly reduce costs, and therefore taxes.  Thanks for your consideration and anticipated reply.

Sincerely,

Kevin T. March
163 Princetown Road
Rotterdam, NY 12306

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New York is putting its worst face forward at the pumps  
First published: Tuesday, August 14, 2007

Last week I was roaming northern California. Two weeks ago, it was Indianapolis, and in between, there were a couple of quick visits to Providence, R.I.
    
Yes, my arms are tired from all that flying, but that's not where I'm going with my crazy schedule.

It's about gas prices. I've gotten an eyeful up close and it is very annoying.

I don't care how sophisticated a traveler you are, you can't help check out the price of gasoline when you're out of state and do a quick comparison with back home. What I learned over the last two weeks is what we've been told all along, we New Yorkers are getting blistered with taxes.

It's one thing to read in the abstract in USA Today about where New York stands in comparison to other states in terms of taxes on gasoline -- we're the highest -- and quite another to see gas stations in other states all lit up with prices we haven't seen in a year.

In Indianapolis, a random check of stations showed regular going for $2.68 a gallon. I filled my wife's Buick outside of Providence on Sunday for $2.65 a gallon, although the average price appeared about 10 cents higher. On the way over, through Massachusetts, the price was in the $2.80s. But the heavy salt in the wound was California, which traditionally has higher gas prices than anywhere in the country because of required additives and restrictions. In Lodi, gas was selling for $2.739 last Friday.

At home, it was still over $3. In fact, checking the AAA gas scoreboard, three states in the country have gas averaging $3 a gallon or more. They would be Hawaii, Alaska and New York.

Granted, there are wide variances within a state in gas prices. Still, the obvious difference was jarring enough and frosted me good.

No wonder New York has a competitive disadvantage when it comes to luring business and appearing friendly to potential newcomers. We put our worst face forward at the pumps, the pumps that every one sees, takes note of and remembers.

It's mostly about psychology rather than hard finance, to be sure. The difference between $3 a gallon and $2.75 a gallon for someone driving 10,000 miles a year in a vehicle getting 25 miles to the gallon is just $100.

But psychology matters, a lot, when you're the third most heavily taxed state overall in the nation, and only a whisker behind the leaders. And it's not about blue state, red state either, or states with enriched social programs versus those who herd their oldsters, the sick and the lame on to an ice floe.

California, Pennsylvania, Rhode Island, Massachusetts, New Jersey to the south, all have significantly cheaper gas than we do. It costs less in all of our bordering states -- even Connecticut, which is the highest-taxed state in the country.

All the focus in the state Legislature in the last couple of years has been on reducing property and business taxes. While that's fine, we most definitely should take a look at the I Love New York tax, the gasoline tax.

It's really an I Hate New York tax. Think of those garish gas prices at every pump as an advertisement for our state. What does it say to the traveler?

We need a nice chop in the state's actual 60.8 cents a gallon tax. The national average is 45.8 cents. So how about tying us to the national average? That would be a big psychological lift for most of us, and a real lift those for those with marginal incomes who need the car.
As Matthew Maguire of the Business Council notes, "It's easy to dismiss the gasoline tax as not much more than a nuisance tax, but there's a lot more to it. The price of fuel directly effects the costs of delivery to retailers and for service providers." That's all passed on to the consumer.

"And it's a tax that sticks in our craw," adds Maguire. Darned right it does.

Of course, I can imagine all my very green buddies getting knots in their boxer shorts over my suggestion that we should reduce rather than raise gas prices, as they would advocate. There's a school of thought, and I am sympathetic to it to a point, that says public transportation will never be taken seriously in this country until the automobile becomes a true luxury.

The killer argument against that view, however, is timing. I don't see any serious effort at implementing or strategizing expanded public transportation going on now, while the tax money is rolling in.

A far more probable scenario is that as gas prices rise, the automobile will become a class warfare item, decreasingly affordable to poorer folks. Any public transportation plan will then be designed for "those people," as it largely is today, except in larger cities.

So I say let's nip it in the bud, and cut that gasoline tax now. An average tax for once will be a sea change for New York, and we could use one of those.

LeBrun can be reached at 454-5453 or by e-mail at flebrun@timesunion.com.

Quoted from BIGK75

I just e-mailed George Amedore, as he starts to get working on this.
Oops, guess I should have addressed this to Mr. (or Assemblyman) Amedore.
Hope he forgives me.

Quoted Text

George,
I realize that high gas prices and the taxes on it is one of the issues that you stated you were going to work on.  I would first of all like to thank you ahead of time for what, no doubt, is going to be a difficult fight.

I was wondering if there was a way, as you start to plan your movement towards cutting some of the taxes on gas, that you could supply me (and the others I would share this with) with the current burden of taxes that are placed on a gallon of gas at the New York State level.  

I would like to know the following information, if you are able to get it.  The amount of each tax, the reason for the tax, and if you can find out in your work, how much money has recently come in for each tax and if it was actually applied to what it was meant for.

It's time for Extreme Makeover, Assembly Edition and we've got the right person on the job.  

Thanks again and I hope that things can finally start to turn around in this state government.

Sincerely,

Kevin T. March
163 Princetown Road
Rotterdam, NY 12306

cc: http://www.rotterdamny.info/b-general3/m-1182081588/s-0/

Quoted Text

Kevin,

I appreciate your support and would gladly get you the information you requested.  Matt from my district office will contact you shortly with the details of the various gas taxes.  If there is anything else that I can do please do not hesitate to ask.

Sincerely,
George

Quoted Text

Kevin,
Attached is a breakdown of the gas taxes. If you have any questions please call the office at 843-0227.
Sincerely,
George

Quoted Text

Gasoline Taxes and Where They Go (Average New York price $2.880)
$0.6180 total taxes/gallon



Local Taxes:  $0.1046
$0.1046 Sales Tax (assumes 4% county sales tax* @ $2.615 gallon)

--  distributed to counties



State taxes:  $0.3294
$0.0834 Excise tax, license fee, testing fee--     distributed: 81.5% Dedicated Highway Fund,
                                                                            18.5% Dedicated Mass Transportation Fund.
$0.08 Sales Tax ($4% tax capped at $0.08)          --  distributed: General Fund
$0.166 Petroleum Business Tax                            --     distributed:  55% Dedicated Highway and Bridge Trust Fund, 32% Dedicated Mass Transportation Trust Fund, 13% Mass Transportation Operating Assistance Fund.

Federal taxes:  $0.184
$0.184 Federal excise tax/L.U.S.T. tax           

*County rates vary between 3% and 5.5%, in addition certain counties have enacted sales tax caps similar to the State’s cap for motor fuel

Broken out by recipient

$2.59 is retained by the gas station  
$0.12 goes to counties
$0.08 goes to the General Fund
$0.16 goes to the Dedicated Highway Fund
$0.07 goes to the Dedicated Mass Transportation Trust Fund
$0.02 goes to the Mass Transportation Operating Assistance Fund
$0.18 goes the Federal government.

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Difference between tax on $3/gallon vs. $2/ gallon
$3/gallon: $0.6226 tax; $2/ gallon $0.5756 tax; Difference: $0.047 tax/ gallon ($0.0089 state, $0.0381 county)


Average State Prices:
New York         $3.218
Connecticut       $3.277
Pennsylvania     $3.085
Rhode Island     $3.085
Maine                $3.113
Massachusetts   $3.050
Vermont            $3.045
New Hampshire $3.012
New Jersey        $2.950


Gas Tax Descriptions and Rates:

Sales and Use Taxes (County and State):  Tax is imposed on the sale of any tangible personal property sold within the State.  The tax is imposed on the buyer.  The State rate is four percent of the sale price, capped at $0.08/gallon.  County rates range between three percent and 5.5 percent though the median rate is four percent.  Counties are allowed to cap the tax at various rates if they choose.

Petroleum Business Tax:  Tax is imposed on companies in the business of selling petroleum products.  The tax is imposed on the seller of the product when the seller acquires the petroleum product.  The rate of tax is currently $0.166/gallon

Motor Fuel Excise Tax:  Tax is imposed on the buyer of gasoline.  The rate of this tax is $0.08/ gallon.

Spill Tax and Testing Fee:  This tax is imposed on the each gallon of gasoline sold.  The combined rate of these fees is $0.0034/gallon.

Federal Excise Tax:  This Tax is imposed on the gas station at a rate of $0.184/ gallon sold.

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$0.08 goes to the General Fund
$0.16 goes to the Dedicated Highway Fund

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Wouldn't this be a double tax along with the 'tolls' collected??????

Quoted from Shadow

It's the old supply and demand game, if you want it and there's a limited supply the one who is willing to pay the most will get it.

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Bankrate.com
Gas-saving devices mostly a scam
Friday August 24, 6:00 am ET

Julie Sturgeon



Over the years, the U.S. Environmental Protection Agency has tested a myriad of gas-saving devices that burst onto the consumer scene. These include devices that bleed air into the carburetor or bubble air through a container of water and antifreeze mixture, fuel-line gadgets that heat the gas before it enters the carburetor, magnets that clamp to the inside or outside of the fuel line to change the gasoline's molecular structure, and metallic fuel line additives with dissimilar metals that claim to ionize the fuel.

Experts say they all have one thing in common.

"They don't work," says John Millett, spokesperson for the EPA. "Believe me, if it were that easy, cars would be built that way, especially the magnets and whirligig devices. It's smart to be skeptical about claims like that."

The EPA to date has tested in the neighborhood of 100 gas-saving devices, the most recent at the request of the Federal Trade Commission, and only six "indicated a very small improvement in fuel economy without an increase in exhaust emissions."

Another four also made the itty-bitty improvement cut, but per federal regulations, the exhaust emission trade-offs mean consumers who slap these on their cars could face charges of illegal tampering.

Gopal Duleep, managing director of Energy and Environmental Analysis Inc., a technical consulting firm in Washington, D.C., estimates that 95 percent of the aftermarket products don't really change fuel economy.

Popular Mechanics magazine's experts tested seven fuel-saving products for its September 2005 issue and found no significant change in miles-per-gallon ratings. Two actually increased fuel consumption by 20 percent, according to the writer, and a third one melted before they could complete the test.

But none of this evidence stops an eager entrepreneur from pitching his product to people tired of watching the gas pump numbers spin.

"Over the last 15 years or so, I've seen the same products come and go under different names," says Roy Cox, manager of technical training and research for AAA Automotive and author of "Improving Fuel Economy: Money in Your Pocket."

Among the popular advertising claims the FTC is warning folks away from:

• "After installing your product on my car, I got an extra 4 miles per gallon." The trouble is, consumers aren't in a position to scientifically test their mileage for results. The testimonial may be heartfelt, but the driver didn't take into consideration traffic and road conditions, weather and his recent tuneup.
• "This gas-saving device is approved by the federal government." According to the FTC, no government agency endorses gas-saving products for cars. The closest they can come to truth in advertising is to say that the EPA has reached certain conclusions about possible gas savings by testing the product or evaluating the manufacturer's own test data.

The real scoop

Still, innovative breakthroughs happen every day in every field. Who says the gadget on the Internet isn't that phenomenon?

"These vendors will probably tell you there is some sort of conspiracy among the automotive manufacturers, but nothing could be further from the truth," Cox says. "They (manufacturers) do huge amounts of testing and put a lot of resources into research. It's not something they take lightly."

Consider the 1981 air-bleed device that the EPA discovered really did affect fuel economy positively. It shut the air-conditioner off during short periods of acceleration because the engine was already working hard. Today, new cars don't need the product, because Ford, General Motors and the gang incorporated that winning technology into their designs.

But the chances of lightning striking twice like that, particularly with piston engines, don't impress Duleep.

"It's a very small chance, largely because the piston engine has been around for more than 100 years. During this time, every particular angle has been explored, and the chance of somebody overlooking something fairly obvious is pretty small," he says.

For the auto-mechanically minded, it's common knowledge that inefficiencies in the engine and transmission account for much of a car's energy loss, and those are the areas where Duleep searches for improved fuel economy.

He likes GM's Active Fuel Management engine that uses eight cylinders when you need peak power on an interstate entrance ramp, for example, but cuts down to four cylinders during normal driving conditions. (DaimlerChrysler calls its version the Multiple Displacement System.)

"Those are the kinds of things that help you reduce the 20 percent to 37 percent gap between maximum efficiency and the typical efficiency in a car's energy use," Duleep says.

Cox, too, points to gas-guzzling problems in his booklet: If carbon buildup or running a few degrees too warm causes the engine to knock, the powertrain control module is programmed to retard the ignition timing to correct the problem. However, this retarded timing reduces the engine's power and, thus, burns more fuel. Conditions like combustion chambers that are too hot, worn piston rings, valves and gaskets or inadequate electrical power from the battery can also suck up to 8 miles per gallon off your bottom line.

Sorry, Charlie

But notice none of these areas experts cited has anything to do with fuel-tank additives. Most of these magic pills or sticks you drop into the gas tank claim to enhance performance by removing deposits.

"Only in very limited circumstances would that really help, because gasoline has detergents in it that take care of deposit buildup anyway," says Millett.

Those limited circumstances involve an older vehicle -- one with a carburetor rather than a fuel-injected system -- that is driven infrequently or in an atypical way.

"But for the vast majority of drivers, they don't offer a benefit that EPA has been able to say," he says.

Gizmos that fall into the "vortex generators" category in essence create mini tornadoes out of the inlet air between the air cleaner and intake manifold.

According to Popular Science, the idea is to mix fuel with air more thoroughly so that it burns more completely in the combustion chamber. Yet the turbulence reduces the amount of air sucked into the manifold, putting less power at your fingertips. That's how one of the brands Popular Science tested wound up costing a driver 20 percent more of his precious gasoline stash.

Cox has found another flaw with the bulk of air-injection products: They fail to combine air and fuel in the first place. "We don't inject the fuel until it gets right down next to the intake of the actual cylinders in the engine. So there are usually at least a couple of inches between the air intake and the fuel," he says.

Some car enthusiasts do purchase computer chips to recalibrate the engine and transmission, Duleep says. Such tinkering could cost up to $10,000, although you can find plenty of chips that supposedly upgrade your performance and mileage in the $200 to $300 range.

"You can see some modest fuel-economy improvements from those interventions, but it's usually done for performance or to add extra cachet to your car," he says.

Gas prices alone wouldn't justify that mechanic's bill.

Finally, the idea of applying magnets to the fuel line has captured many a car owner's imagination. The EPA's October 2005 reports, however, throw a wrench into that pipe dream. The product's advertised 27 percent fuel-economy improvement didn't materialize in the lab.

"The oil companies and automobile manufacturers are all saying the same thing, 'We wish it was that easy -- a pill in the tank or a magnet to paste into the fuel line -- because we would really like to get 20 percent better fuel economy ratings,'" says Cox. "We'd be all over it.'"

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Shell, Saudis to Spend $7 Billion on Texas Refinery (Update7)

By Christian Schmollinger and Eduard Gismatullin

Sept. 21 (Bloomberg) -- Royal Dutch Shell Plc and Saudi Arabia will spend $7 billion to more than double the size of their Texas oil refinery, the biggest U.S. expansion in fuel production in three decades.

The joint venture, Motiva Enterprises LLC, will boost capacity at the Port Arthur oil refinery by 325,000 barrels a day, making it the largest in the U.S., by 2010. The facility will process 600,000 barrels a day of crude oil, Motiva said today in a statement. That would be enough fuel to fill about 1.5 million cars in one day.

U.S. oil companies have been struggling to meet ever-rising gasoline demand because of local and environmental opposition to new refineries, which resulted in record pump prices above $3.20 a gallon this summer. The plant expansion will cost more than twice initial estimates, reflecting rising steel prices and escalating labor costs.

``We have had strong refining margins in recent years,'' said Ivor Pether, who helps oversee about $17 billion at Royal London Asset Management, including around 30 million Shell shares. ``It's probably very sensible for Shell to raise its capacity in America.''

Record Prices

Oil prices have surged to a record above $82 a barrel, even after the Organization of Petroleum Exporting Countries pledged last week to pump more crude. Saudi Arabian Oil Minister Ali al- Naimi and other group officials have frequently blamed higher prices on a shortage of refining capacity. Crude oil for November delivery traded at $81.48 a barrel in New York today.

The refinery expansion will cost $21,000 per barrel-a-day of capacity. That's ``consistent with recent industry estimates of refinery replacement costs,'' London-based Citigroup Inc. analyst James Neale wrote in a note.

Shell invests about $25 billion a year in projects, Malcolm Brinded, the company's head of exploration and production, said Sept. 4. The cost of the refinery expansion was estimated by Shell at more than $3 billion in April last year.

Both Shell and Saudi Arabia will supply heavy-grade crude oil to the refinery to be processed when the additional capacity is in place, Rob Routs, head of refining at Shell, said today on a conference call with reporters.

The price difference between a barrel of crude and a barrel of gasoline, a rough measure of refining profitability, rose to a record $37.477 a barrel on May 17 in the U.S.

Tax Breaks

President George W. Bush has pledged measures including tax breaks to spur construction and ease reliance on gasoline imports. Shell is betting that refining profit will surpass the escalation in costs, even though new capacity worldwide will drive margins down in the future, according to Routs.

This ``is one of the reasons why you need to have a very efficient refinery,'' he said.

Oil product supply has failed to keep pace with the growth in demand for transportation fuels. The International Monetary Fund forecasts global economic growth of 5.2 percent in 2007 after 5.5 percent expansion last year, extending the longest period that growth rates have held above 4 percent since the early 1970s.

The Port Arthur expansion is ``equivalent to building the first new refinery in more than 30 years,'' Motiva said in the statement. Marathon Oil Corp.'s 285,000 barrel-a-day Garyville, Louisiana, plant was the last new facility built in the U.S., starting up in 1976.

Refiners have been reluctant to commit to building new U.S. plants because of cost inflation and environmental objections, prompting Bush to offer disused military bases as potential sites. The Motiva investment will take place at an existing refinery, making permitting easier.

New Jobs

Motiva in April 2006 said it planned to begin the Port Arthur expansion in 2007 and to complete the project in 2010. Routs said today the total cost would be $7 billion and more than 4,500 construction jobs and about 300 new full-time jobs would be created.

``They've been talking about it for a while and the reason it's so expensive is that you're building all of the upgrading equipment to make higher-quality fuels from lower-quality crudes,'' said Alex Brooks, an analyst with UBS AG in London. ``The returns will be higher than with a new build. The number they're looking for is a 15 percent return.''

Expanding Existing Plants

The existing Port Arthur refinery is about 90 miles (145 kilometers) east of Houston and can process 275,000 barrels a day. The expansion will vault the Port Arthur refinery past Exxon Mobil Corp.'s Baytown, Texas, plant, currently the largest in the U.S. with capacity of 562,500 barrels of oil a day.

The engineering contract for the enlargement project was awarded to a joint venture of Bechtel Corp. and Jacobs Engineering Group Inc.

Marathon Oil will add 180,000 barrels a day of capacity to the Garyville refinery for $3.2 billion, it said in November. The project is scheduled to be completed in the fourth quarter of 2009.

Chevron Corp. plans to expand a gasoline production unit at its Pascagoula, Mississippi, facility that will boost output by 10 percent. The unit currently refines 330,000 barrels a day.

To contact the reporter on this story: Christian Schmollinger in Singapore at christian.s@bloomberg.net ; Sophie Tan in Singapore at sophietan@bloomberg.net .

Last Updated: September 21, 2007 11:42 EDT

Quoted Text

Oil prices slip below $79 a barrel
By GEORGE JAHN, Associated Press Writer 8 minutes ago
VIENNA, Austria - Oil prices dropped Tuesday after Royal Dutch Shell said it will boost production from an oil terminal in Nigeria, Africa's largest oil producer.

The dollar's recovery also weighed on prices, along with signs that the worst of the Gulf of Mexico storm season was over.
Light, sweet crude for November delivery lost 25 cents to $78.77 a barrel by noon in Europe on the New York Mercantile Exchange in electronic trading. The contract fell $2.20 to settle at $79.02 a barrel Monday in New York.
November Brent crude fell 27 cents to $76.31 a barrel on the ICE futures exchange in London.
Heating oil and gasoline futures slipped by nearly a penny to $2.1516 a gallon (3.8 liters) and $1.9905 a gallon (3.8 liters). Natural gas futures added 8.4 cents to $6.930 per 1,000 cubic feet.
News that Royal Dutch Shell PLC would boost production at a Nigerian oil platform shuttered by violence last year helped to send prices lower. Monday, the oil company said it had lifted a monthlong force majeure from its Forcados oil terminal. Force majeure is a legal condition which protects a company from not meeting contractual delivery obligations.
The Forcados terminal, which can pump 380,000 barrels of oil a day at full capacity, was shut down by militant attacks in February 2006, but has been operating at 1 percent to 3 percent of capacity since this summer.
In recent months, violence has abated in Nigeria, Africa's biggest oil producer and one of the top overseas suppliers to the United States.
While Vienna's PVM Oil Associates noted that "production at the Forcados field is still very low," signs that the worst was over at the oil field supported prices.
Oil prices have been volatile in recent days as investors have debated whether demand will weaken in the fourth quarter.
Some analysts point to ebbing demand for gasoline and forecasts for high temperatures through December as signs the oil, gasoline and heating oil markets are adequately supplied. Others say low heating oil inventories and refinery activity shows supplies are tight.
As a result, some analysts believe oil will fall to $65 a barrel or lower, following a typical seasonal pattern, while others expect futures to break that pattern and push toward $90 a barrel.
"This is the shoulder season between the peak summer and winter season for oil ... so it's quite typical to see a softening in prices," said Victor Shum, a Singapore-based energy analyst with Purvin & Gertz. "But I think oil market fundamentals remain quite firm in the near term ... It won't be long before traders worry about the low heating oil inventory."
A strengthening dollar has also led to lower oil prices, Shum said.
The greenback fell to a record low against the euro after the U.S. Federal Reserve cut interest rates in September, and that helped push crude oil futures to a record high of $83.90 a barrel later in the month. A weak dollar makes oil and other dollar-denominated commodities inexpensive when calculated in other currencies.
But the dollar has rebounded some after a report issued Friday showed U.S. jobs growth in September was the highest since May, easing fears that the world's top energy consumer was set to tip into a recession.
Analysts say oil prices are also easing as the market believes tropical weather systems no longer pose a serious threat to critical gas and oil infrastructure in the Gulf of Mexico.
Traders are now waiting for the U.S. Energy Department's weekly report due Thursday, delayed a day because of a federal government holiday Oct. 8.
U.S. crude oil inventories are expected to have gained 1 million barrels in the week ended Oct. 5, according to a Dow Jones Newswires survey of analysts. Gasoline inventories are expected to have fallen 300,000 barrels while distillates, which include heating oil and diesel fuel, are expected to have dropped 600,000 barrels.

Quoted Text

Report forecasts higher heating bills this winter
BY JOHN WILEN The Associated Press

   NEW YORK — Almost all Americans will pay a lot more to heat their homes this winter, even though temperatures are expected to be warmer than average.
   That’s the sobering message from an Energy Department report Tuesday that estimates heating oil costs are likely to jump 22 percent and natural gas bills, on average, will rise 10 percent between October and March.
   And while the National Oceanic and Atmospheric Administration forecast a milder than average winter in most parts of the country, the agency also predicted Tuesday that temperatures will be 1.3 percent colder than last year.
   In Massachusetts, where about 40 percent of homeowners rely on oil for heat, consumers are bracing for price spikes, said Michael Ferrante, president of the Massachusetts Oilheat Council, a trade group. “They are buttoning up their houses even more, they are turning down their thermostats, they are wearing sweaters,” he said.
   Surging crude oil prices are the primary, but not the only, culprit for the jump in fuel oil costs. This spring and summer, American refineries experienced an unusual number of unexpected maintenance outages. The net result was that fewer refineries were producing gasoline, heating oil and other petroleum products.
   The outages sent gasoline prices to a record $3.227 a gallon in late May as refiners scrambled to produce enough gasoline to meet peak summer driving demand.
   “Because they used every ounce of the refinery to produce gasoline, it came at the expense of distillate fuels” like home heating oil, said Phil Flynn, an analyst at Alaron Trading Corp. in Chicago.
   Despite the government forecast, natural gas futures prices have actually been mostly falling in recent weeks. Inventories remained high as new sources of natural gas were tapped this year and a cooler summer depressed demand.
   “We could have all-time record storage by the beginning of February,” said Tim Evans, an analyst at Citigroup Inc. in New York.
   But all of that could turn around if oil prices stay high and electricity plant operators switch to natural gas for units that can burn either fuel, said Ron Denhardt, CEO of Strategic Energy & Economic Research Inc., in Winchester, Mass.
   On the other hand, supplies coming on line this year, including Anadarko Petroleum Corp.’s Independence Hub platform in the Gulf of Mexico and a portion of the huge Rockies Express natural gas pipeline project, are expected to boost natural gas supplies by 2 billion to 2.5 billion cubic feet.
   “That’s a lot of supply coming on,” Denhardt said.
   The Energy Department estimated a gallon of heating oil will rise to $2.88 this winter as crude oil prices stay high. Crude futures traded on the New York Mercantile Exchange have surged by more than a third from a year ago and settled Tuesday at $80.26 per barrel, up 1.2 percent for the day.
   In Massachusetts, the Division of Energy Resources said dealers were charging an average $2.72 a gallon for fuel oil on Tuesday — a record high, and up 5 cents from the most recent survey on Sept. 18. The fi gure is 11 cents higher than the peak that followed a series of price spikes after Hurricane Katrina in 2005.
   Heating oil is used by 7 percent of American households, mostly in the Northeast, while natural gas heat is used by 58 percent of households. Another 30 percent are heated by electricity, which the Energy Department estimated will rise 4 percent in cost this winter.
   For the 5 percent of American homes that use propane, winter heating costs are expected to increase 16 percent.
   While some homeowners are choosing to convert to natural gas furnaces, oil dealers argue that such conversions don’t pay. An average conversion costs $5,575, the Oilheat Council says.
   “I think consumers understand if they do the research, heating oil has been cheaper than natural gas in the past,” said Ken Williams, owner of Scott-Williams Oil, in Quincy, Mass.
   The wild card in the heating cost estimates is the weather. If the U.S. experiences a warmer than expected winter, prices of some fuels could fall through the winter.
   But if the winter is particularly cold, prices could jump more than expected. “You could have [supply] tightness if you’re going to have a colder-than-normal winter,” Evans said.
   Penny Taylor, who spent about $350 a month last winter to heat her Sarasota, Fla., home with electric heat, blanched when she heard about Tuesday’s price forecast from the Energy Department.
   “I think we’re going to have to get a lot of blankets, because there’s no way we’ll be able to afford to run the heat,” she said.

Quoted from z2im

Vote for Angelo Santabarbara and Carolina Lazzari for Schenectady County Legislature as they want to eliminate the county sales tax on home heating fuel.  It is my understanding that Schenectady county is one of the only counties in the area that taxes home heating fuel.

Quoted from senders

I want a rebate for the "charge for unseasonable weather".....it's a surcharge for what???????????

Quoted from senders

Well, at least the other hand could possibly be used to heat my home.... ;D..smelly but feasible...

Quoted from Rene

Last week I got fuel oil. It was $2.59 per gallon, this week it is $2.75.  The guy said his next load coming in tomorrow will be $2.85 and no end in sight.

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Americans may need to sacrifice for gas
BY JOHN WILEN AND JOHN PORRETTO
The Associated Press

   NEW YORK — Jim Ammons grumbles to himself every time he fills up his Ford Expedition, but he says gas prices would have to almost quadruple to $10 a gallon before he’d ditch his SUV.
   Still, paying $55 to fill his 20 gallon tank isn’t easy for the information specialist.
   “This right here is catastrophic for a lot of families,” Ammons, 54, said this week at a Houston Chevron station that was charging $2.65 a gallon for regular unleaded. “A lot of them have to choose: Do I buy food, do I send my kids to school or do I fi ll up my tank.”
   That choice may soon get a lot more difficult. The steep rise in oil prices to $90 a barrel over the past month means American consumers are almost certain to pay more for gasoline, heating oil, airline tickets and even food and goods that have to be transported great distances, experts say.
   Some analysts are now predicting oil could go as high as $120 a barrel, but others argue that underlying supply and demand fundamentals do not support such a spike and that a drop in prices is more likely.
   What is clear is that oil has become a magnet for “hot money” from hedge funds and other momentum investors betting that the trend for higher prices still has a way to run. The dollar’s decline, which makes dollar-denominated oil futures a bargain to overseas investors, also has played a role in the recent runup.
   Absent an astounding rise in prices, few economists expect high energy costs alone to push the economy into a recession, as previous oil price shocks did in the 1970s and early 1980s. That’s because the economy has become more energy efficient, and incomes have grown faster than energy costs. On a percentage basis, the country spends half the amount on energy today than it spent in 1980.
   Gasoline prices now average $2.76 a gallon across the country for unleaded regular, according to the Energy Information Administration. While that’s down almost half a dollar from their May peak, pump prices are still 53 cents higher than a year ago.
   Gas prices usually fall sharply after Labor Day — they dropped 62 cents last year between the end of August and mid-October, for instance. But this year, prices have actually risen slightly since summer’s end. In part, that’s because oil futures jumped 30 percent since late August, topping $90 a barrel for the first time ever on Thursday.
   “Consumers will now see higher prices at the pump in the coming months and weeks,” said John Kilduff, vice president of risk management at MF Global UK Ltd.
   There are signs high fuel prices are already having an impact. The EIA says demand for gas fell 0.5 percent over the last four weeks from a year ago, and has been lower since Labor Day. That reverses a trend in recent years of steadily rising demand. During some weeks this summer, demand rose more than 1 percent over the previous year.
   The EIA also expects heating oil costs to jump 22 percent this winter. Demand may slip a little, but there’s only so much homeowners dependent on that fuel source can do to cut back, especially if it turns out to be an unusually cold winter. The result may be less spending on other goods and services, which could hurt economic growth.
   Higher jet fuel costs are already restraining airline earnings. For instance, Goldman Sachs analyst Robert Barry recently cut his fourth quarter earnings estimates for Delta Air Lines Inc. from 29 cents to 6 cents due to rising fuel costs. Spot jet fuel prices at New York Harbor rose to $2.42 a gallon this week, up from $1.80 a gallon a year ago, according to the EIA.
   Diesel prices are averaging about $3.04 a gallon, 54 cents higher than a year ago, and the American Trucking Association estimates the industry’s total bill will jump $5 billion this year to $108 billion.
   Trucking companies such as Yellow Transportation and Roadway Express, units of YRC Worldwide Inc., and package delivery firms such as United Parcel Service Inc. are able to pass on at least a portion of those higher costs to customers through fuel surcharges. But that’s not an option for independent operators like Thomas DelBello, whose tab for each fill up of his dump truck has soared to $400.
   DelBello says it’s difficult for him to pass on the higher cost because many of the people he’s driving for already have contracts — fuel prices included — with their own customers.
   “It’s hard to get any of it back,” said DelBello, who lives 15 miles south of Houston. “These days, it’s the cost of doing business.”

DAVID DUPREY/THE ASSOCIATED PRESS
Bob Krueger shows a vintage gas price sign that he keeps at his full-service gas station Thursday. Krueger, 67, has run the Erie County garage for 45 years and remembers when gas was 14 cents a gallon plus tax.

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CAPITAL REGION
Home heating oil users in for a shock
Double-digit price hike from ’06 cited
BY JASON SUBIK Gazette Reporter

   The average home heating oil price in the Capital Region hit $2.88 per gallon this week, up 31 cents, or about 13 percent, from last year, according to the New York State Energy Research and Development Authority.
   Local home heating oil prices exceed the average in every other state, according to the Energy Information Agency, but are not the highest in New York state — New York City and the lower Hudson Valley region average over $3 a gallon.
   The EIA estimates prices will continue to rise to an average of $2.95 throughout New York state next month. According to the EIA’s Winter Fuel Outlook report, home heating oil consumption throughout the Northeast, about 32 percent of the U.S. home heating oil market, should rise about 5 percent over last year if projections of a winter 4 percent cooler than the last prove true.
   NYSERDA spokeswoman Colleen Ryan said her agency from July through September has seen a 130-household increase over last year in the number of energy audits completed under the Assisted Home Performance with ENERGY STAR Program.
   “Even though it’s warmer out, some people want to be ahead of the game for winter time,” Ryan said.
   Households at 80 percent of the state’s median income are eligible for up to 60 percent of the cost of an energy efficiency project, such as insulation, space and water heating system upgrades or replacement windows, up to a maximum subsidy of $6,000 per single-family home. Buildings with three- to four-family dwellings may be eligible for up to $12,000.
   According to the U.S. Census Bureau, median annual income for a single person in New York in 2007 is $42,896; for twoperson families it’s $51,994; for families with three people it is $62,815; and for families of four, the median is $74,501.
   Some home heating oil users near natural gas lines may also be seeking to switch over to the less volatile heating source.
   “A lot of people are inquiring about converting to natural gas and/or propane. They are shying away from oil,” Adams Heating & Cooling Co. Schenectady Service Manager David DeCrescente said. “The average price to go from oil to gas is about $3,000. The way the prices are for oil today the average customer will probably save 15 percent [annually making the switch].”
   Oil futures jumped to a new record close of $90.46 a barrel Thursday on news that OPEC production increases aren’t coming as fast as expected and that the cartel won’t announce new output quotas when it meets next month.
   Some experts have speculated that the world may be in the midst of an oil futures bubble, which could provide an incentive for companies to put more oil into storage inventories, driving up short-term prices, betting that it will be more profitable to sell oil in the future than today. Hany Shawky, a University at Albany professor of finance and director of its Center for Institutional Investment Management, disagrees. He said oil future prices remain firmly tied to fundamentals.
   “Oil prices are really not a bubble. Strictly speaking, they are a function of supply and demand and how heated the world markets and global economy are,” he said.
   On Wednesday, crude prices jumped sharply after the Energy Information Administration reported that oil inventories fell by 5.3 million barrels last week, much more than analysts expected. That report reversed a three-day downward price trend and put energy traders back in a bullish mood, analysts said.
   Shawky said global supply of oil remains so tight that risks such as oil production disruption from Middle East violence continue to affect oil futures prices.
   Light, sweet crude for December delivery rose $3.36 to settle at $90.46 a barrel on the New York Mercantile Exchange Thursday after rising as high as $90.60 earlier, a trading record.
   According to the EIA, the price of crude oil accounts for about 42 percent of the fi nal cost of home heating oil while the cost of refining it accounts for 12 percent and marketing and distribution make up 46 percent.
   Although the EIA anticipates a cooler winter that last year, temperatures are still expected to be 2 percent higher than the 30-year average.
   Shawky said if the anticipated demand levels for home heating oil do not meet expectations, the price will come down. He said another less desirable way for oil prices to drop would be a U.S. and then worldwide recession.  

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Experts offer ideas to cut heating bill On the Money
BY EILEEN ALT POWELL The Associated Press

NEW YORK — Heating costs are rising again this year, but there are steps families can take to save money and still keep warm.
“The trend for the last seven years in the price of fuel has been upward,” said Katreri Callahan, president of the nonprofit Alliance to Save Energy in Washington, D.C.
“So the less fuel you use — and the more efficiently you use it — the lower your bills.”
Consumers don’t necessarily have to invest huge sums of money winterizing their homes, she points out.
At no cost, for example, homeowners can take advantage of the heat from the sun by opening drapes and blinds during the day and closing them at night. Or, for a modest expense, they can make sure that filters on their furnaces are cleaned or changed at the start of the winter season — and every month until spring.
   Invest the time to winterize now, and it will pay off almost immediately, Callahan said. Sealing leaks and increasing insulation in the attic and exterior walls alone can cut heating bills by 20 percent, she said.
   Sharp increases this year in crude oil prices — which spiked above $90 earlier this month — have contributed to rising prices for heating oil, gas, propane and electricity.
   The Energy Information Administration, the research and forecasting arm of the Department of Energy, said in its recent winter fuel outlook the average American household can expect to pay $977 for heating fuel this year, an increase of nearly 10 percent from last year’s $889 heating bill.
   Families who heat with natural gas will see costs rise 10 percent to $891, the EIA estimated. The increase for electricity will be 4 percent to $855, and for propane, 16 percent to $1,570, it said.
   But the families who will take the biggest hit — mainly in the Northeast and mid-Atlantic states — will be those who use heating oil, the EIA said. Their bills are projected to rise 22 percent to $1,785.
   Some heating oil companies in the Northeast have reported a rush of consumers asking to lock in prices ahead of the season; other consumers have sought out collectives like PIRG Fuel Buyers, which negotiate bulk rates for fuel and discounts on service contracts. Still other families are signing up with alternative suppliers — sometimes called third-party suppliers — in deregulated markets.
   Jeffrey Mayer, president and chief executive of MXenergy in Stamford, Conn., said his company uses hedging strategies to lock in prices for customers using natural gas and electricity in 14 states.
   So while utilities are forced to pass through costs, his company can offer contracts with set rates for up to three years.
   “Ford Motor Co. and other industrial buyers have been able to do this for years,” he said. “My thinking was the people like my father, who lives outside Philadelphia, should have the same kind of price protection.”
   In one New York market, the local utility is selling natural gas for $12.08 per 1,000 cubic feet; MXenergy’s price on a 36-month contract is $11.87 per 1,000 cubic feet.
   Mayer described it as similar to taking a fixed-rate mortgage instead of an adjustablerate and argued that it’s easier for consumers to budget for their fuel because they can avoid the price shock that can occur at the height of the season.
   Even consumers who shop for better prices need to consider conservation measures so they don’t waste