Energy companies yesterday were shutting down refineries that can produce nearly a quarter of U.S. gasoline, jet fuel and other oil products in advance of Hurricane Rita, a precautionary measure that threatens to push prices higher.
The amount of the damage to refineries on the Texas and Louisiana coast, and the length of time they remain idle, will determine the extent of price increases and the availability of the supplies, analysts said.
We should watch to see how long and how many of the refineries stay down. During the California energy crisis, Enron showed the energy companies just how profitable shutdowns and shortages can be.
But, we do the government, and it is there job to protect us. And the Bush administration has moved to protect us. He has appointed a oil company lawyer to investigate price gouging.
Anyone want to bet on just how big the profits of the energy companies will be this quarter.
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