Is The Oil Industry Purposely Driving Up Gas Prices?

[RCPJAP]

First Senator Boxer, now State Attorney General Bill Lockyer is asking for transcripts of what an oil refinery executive said about limiting supply - comments made in front of our cameras, by one of the country's biggest independent refiners.

Bill Lockyer saw our story and now wants a transcript of what oil refinery president Hank Kuchta said to fellow refiners at last month's conference. What that refiner said conflicts with oil company explanations of high prices based on supply and demand.

(Snip)

Hank Kuchta, President & COO of Premcor (3/10/05): "If we go in and we start expanding like crazy before the demand gets there, that's the shoot yourself in the foot theory, and we'd all be the opposite of geniuses, you pick the word. They'd kill us, believe me."

Hank Kuchta is president of Premcor, an independent oil refiner with the capability of processing nearly 800,000 barrels a day. But Kuchta told his fellow refiners his company doesn't want to produce as much gasoline as it can because that might flood the market and drive down prices.

(Snip)

Yesterday, California Senator Barbara Boxer called the Federal Trade Commission to investigate Premcor.

So far, the company won't admit that a copy of the speech even exists.

Mark Matthews: "What did Premcor tell you when you called and asked for a opy of the speech?"

Lockyer: "Well they told us they'd get back to us."

Premcor told us the same thing. We are still waiting for their response. As we reported yesterday, Senator Boxer is asking for the Federal Trade Commission to investigate, and today the FTC called our general manager here at ABC7 to make sure that we preserve our tapes.

http://abclocal.go.com/kgo/news/politics/print_041405_politics_oil.html