AAA asked the U.S. Senate Tuesday to investigate why oil companies are making huge profits at a time when glitches at gas refineries have caused pump prices to soar. We are concerned about the number and frequency of refinery outages this year in light of the large profits the industry has been reporting," AAA Public Affairs Director Geoff Sundstrom told the Senate Committee on Energy and Natural Resources. "AAA doesn't know why refiners appear to be failing at this task, but we do think it would be worth the committee's time and trouble to find out." Sundstrom spoke at a Senate hearing at which lawmakers asked energy experts to explain the spell of unplanned refinery shutdowns that have thrown gas supplies into disarray from coast to coast, boosting average pump prices to a record $3.09 per gallon in the United States. California Energy Commission spokesman Bob Aldrich said his agency does not investigate the industry but does track its practices. This year the big story was a series of glitches in the annual switchover from winter gas to a differently formulated summer gas. Tom Kloza, publisher of the Oil Price Information Service ... said the surprise this year was that refineries outside California also had unplanned problems with their normal spring maintenance. "I did not think we'd see the same downtime elsewhere in the country," he said. Sean Comey, spokesman for AAA of Northern California, said the gas refining business is unusual because it seems that even when production goes down, prices and profits go up. "When most industries have production problems, profits suffer as a result," he said.
"
Latest
Latest News
Each news summary is created according to strict standards. Here's how we do it.
Each summary is created using a consistent editorial procedure. The target length is approximately 16 lines of 11-point Arial text in a 650-pixel-wide column. Up to 25% of a summary may be set in bold to emphasize the most important ideas. Summaries are composed of verbatim excerpts presented in the same sequence as they appear in the original news source, with very minor editorial additions. Where material has been omitted between excerpts, the omission is indicated with ellipses (...). Any words added by an editor for clarity or context appear in [brackets]. Our original news editor was Fred Burks. Tod Fletcher edited most summaries from 2007 through 2014, and Mark Bailey has served as news editor since 2014.