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  • Want Cheaper Gasoline? Waive Regulations

    Even as the summer travel season is winding down, drivers have certainly noticed that gas prices are marching back up. Since the law of supply and demand hasn’t yet been repealed (or even suspended by executive order) the answer seems simple enough: increase the amount of gasoline available.

    A recent Wall Street Journal article shows that the White House realizes its policies have been reducing the supply (and thus increasing the price) of gasoline. Here’s the story.

    Last year, Sunoco announced it would have to either sell or close its refineries near Philadelphia. The Carlyle Group, a private equity firm, has agreed to buy the refining business, even though Sunoco has lost $1 billion running the refineries over the previous three years.

    How is it possible for a company to lose that much money in the refining business when gas has been stuck at more than $3 per gallon for years? There are several reasons, but a big one is the cost of federal regulation.

    “A key issue Carlyle identified was a 2005 consent decree with the Environmental Protection Agency under which Sunoco agreed to limit emissions at its refineries,” the Journal reports. “Carlyle wanted to work on the refinery without triggering costly environmental reviews. The White House referred the issue to the EPA [Environmental Protection Agency], which along with state and local environmental officials agreed to modify the decree, allowing Carlyle to transfer emissions credits from the Marcus Hook refinery, in effect giving the Philadelphia refinery greater leeway to pollute.”

    That’s one way to put it. One could also say that the EPA is giving the Philadelphia refinery greater leeway to produce gasoline, which can “protect consumers from higher prices at the pump and keep people from losing their jobs,” as an Obama Administration spokesman admitted to the Journal.

    There are other benefits to this deal. Carlyle says it plans to reduce emissions over time by making the refinery more efficient. It also plans to refine more domestic oil instead of imported crude, since as Reuters reported last month, “the surge in U.S. oil and gas production from non-conventional sources such as shale has redefined energy markets and refining in the world’s biggest economy, providing a cheap source of crude for domestic plants.”

    But this wouldn’t have happened without the EPA agreeing to ease up on regulations. There’s a lesson here: Private industry is ready to step up and produce the fuel and jobs America needs. But the government remains a major roadblock to progress.

    In Philadelphia, the EPA has agreed to get out of the way. Let’s see if this sets a precedent.

    Posted in Featured [slideshow_deploy]

    15 Responses to Want Cheaper Gasoline? Waive Regulations

    1. guest says:

      Go on a nice long vacation obama and don't come back. Take the democrats with you please.

      • Lou Luna says:

        I use to be a Democrat after this fraud was elected I open my eyes and staring listening to talk radio reading and researching, man I felt duped for years i was only a Democrat cause my mom as a kid told me the Democrats are for the poor people and I believed her

      • MR INFIDEL says:

        And take the EPA & TSA with you!

    2. guest says:

      We as a nation deserve better.

    3. Bobbie says:

      For a man that only has something to do with anything at his convenience and nothing to do with what he can do, how does he get away with this? Of course waiving Obama's regulations would allow less expense to gas as republicans who represent the people, advise. Obama can't seem to accept the facts contradicting his reasons for his needless regulations.

      Yes, America deserves so much better than be reduced to such lesser expectations in American leadership!!!!!!

      Assessment of political parties: republicans respect humanity, democrats subject humanity!!!!

    4. DaveJ says:

      Will this establish a new precedent? I wouldn't count on it.

    5. Chris J says:

      Its been reported that Obama's golf handicap has actually risen since he took office, which if nothing else demonstrates the man is pathologically unable to learn from his mistakes. The appointment of Lisa Jackson as head of the EPA is clearly among his biggest blunders to-date, and one that only a resounding loss come November can rectify.

    6. PaulE says:

      The entire gasoline production process has become so over regulated, what with regional gasoline blend mandates and numerous layers of EPA "oversight" (micro-management at virtually every step in gasoline manufacture), that more and more refineries in this country will end up having to close because they cannot simply generate a profit to maintain existing operations.

      Mr. Tucker does an excellent job of outlining the hoops the new owner Carlyle had to jump through just to modernize their refinery without incurring excessively and costly delays, in both time and money, in order to supply a product the consumer desperately needs.

      The purpose of government is supposed to facilitate the free-flowing environment of the private sector economy that drives our country. That's it. End of story. Instead what we have is a government focused on minimizing the operation of the private sector to appease a small group of environmental extremists, who donate heavily to the party in power, in order to "save the earth" from humans. What's wrong with this picture?

      By the way, there is nothing wrong with clean air and water. I, along with everyone else who reads Heritage, believe in that. However, many of these environmental groups have morphed into near cults that believe in order to save the planet, all human progress has to be halted or severely restricted. Thus the need for endless EPA studies coupled with nearly endless comment periods from every fringe environmental group. Balance needs to be restored to the entire system.

    7. Lloyd Scallan says:

      Again, Rich is blaming some faceless government agency. It's Obama keeping regulations in place to drive higher gas prices. He thinks he will force the American people into his idea of a green pregnant roller-skate that no one will buy. Obama will not reduce regulations that decreases the price of any fossel fuel. Obama will not change his agenda. His path to destruction of our economical system in favor of socialism is set.

    8. DoJo says:

      Why does Carlyle Group sound so familiar? Did they have fund raiser for Obama in NYC–trying to remember

    9. Fred M Pohl says:

      Obama do all of us a favor take a permanent vacation

    10. Peggy says:

      We should DEMAND better!! Come Nov. I pray this nightmare we're all in will come to a screeching halt!!

    11. Don says:

      Obama, the EPA and the Energy Dept are obsolete and need to be sent out to pasture by sending Obama,
      this November 6, 2012, to the unemployment lines in Kenya and never come back.

    12. Jim says:

      Why limit this l – o – n – g vacation to just Obummer? Why not a "package deal" for Obummer, Pelosi, Biden, Soros, and all Obummer's Czars?

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