From Deseret News archives:
Gas-price reason called bogus
3 explanations are considered valid but one raises eyebrows
- Page:
- < Previous
- 1
- 2
"The mountain states are more isolated than other states, so if the main refineries that supply Utah have gone down for fall maintenance at once," not much opportunity exists to bring in supplies from other areas to lower costs, he said.
Burdette said the Rockies are indeed an isolated gasoline market. By contrast, he said markets in the South, Midwest and East are more easily connected by pipelines and ships (and also are better connected to imported supplies). So if supplies become tight in one area, they can be shifted among those regions to help lower prices.
"That is not the case in the northern Rockies, or the West Coast," he said. "So for example, when tourist traffic is high (in Utah) in the summer, markets tend to get tight, and there is no pipeline to help directly from, say, California or Texas."
Burdette adds, "That is the plight of self sufficiency. When the market gets tight, you have to wait for the market to catch up with demand."
"But 85 percent of Utah uses natural gas (for heating) and not heating oil, so that shouldn't be an excuse for limiting supplies," Isaacson said.
The biggest factor for prices to fall would be very localized competition between stations in the same area, Isaacson said. But Burdette said extra supply is needed for such competition (and the extra sales it would bring) to really drop prices quickly and that may not be available at a time when refineries are doing semiannual maintenance.
Isaacson also noted that many national studies show that big hikes or drops in wholesale prices tend to be followed by smaller retail increments spread over several weeks, so what has happened recently in Utah is not unexpected or new.
A tiny bright spot may be on the horizon because of high gas prices, Isaacson said. They are reigniting interest in developing oil shale and tar sands in Utah, which could help increase local supplies over time.
"But to get it in production where it will significantly affect American supplies, that will be 10 years down the road," he said. "It might do some good locally sooner. But it will still be at least five years before it is scaled up to the point that it affects the local market."
E-mail: lee@desnews.com
- Page:
- < Previous
- 1
- 2
Comments
- Gifts for gamers 5:27 p.m.
- Acquired immunity may not help 5:15 p.m.
- Mitchell called intelligent, controlling 5:11 p.m.
- Many count pennies in recession 5:09 p.m.
- Clinton class sweet on candy 5:06 p.m.
- Alta rejects canyon subdivision 3:33 p.m.
- Adult sports leagues offered 3:19 p.m.
- Oil prices spike 3:06 p.m.
- Stocks turn higher 3:03 p.m.
- Nature's Way leaving Utah County 3:02 p.m.
- Hall mouths off about hate of Utah
894 - Cougars beat Utes in overtime
481 - Max Hall issues apology
360 - Hall reprimanded by MWC
303 - Hall's pain reflects self-betrayal
284 - Utes won't respond to Hall
202 - BYU is champion of the state
140 - Man trapped in Nutty Putty cave dies
121 - Cave to be sealed with body inside
119 - Religion in politics is tiresome
94
Live 'Twittologue' Dec. 2, 4:00 p.m. with Jason Chaffetz. Click for more.
I wanted to tell them not to go. I dropped subtle hints. "My money is on...
When I was a kid, I worshipped my grandpa. He was undoubtedly my hero....
There is a complete double standard here! Because that's how BYU wants it....
I am very pleased with some of the responses on here. I am soooo excited to...
Mike, one thing you don't lack is self-assuredness. I know someone exactly...
Again, one must remind the readers that Michael Ash is not a Church leader or...
Oh come on.....since when can BYU leadership be responsible for what comes...
I was at the 2008 game in RES and I saw Hall's family, cause I was walking...
Well the fab five is aweome!!!!!Every time I think of you I think of great...
"To even start to think that billions of galaxies... could all work properly...
what in the wide world of sports is self-betrayal and what does that have to...
"We need a thorough evaluation of the current state of affairs... of where...



You can be the first to comment on this story.