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Oil industry sees drop in future gasoline demand, is scaling back refinery expansions
Published in Saudi Press Agency on 17 - 06 - 2007


With the U.S. Congress and the White
House pushing to increase the use of ethanol, the oil
industry is scaling back its plans to expand refineries _
which could keep gasoline prices high, possibly for years
to come, according to AP.
President George W. Bush has called for a 20 percent
decline in gasoline use by 2017, and the Senate is debating
legislation for huge increases in the use of ethanol as a
motor fuel. Oil companies see a growing uncertainty about
future gasoline demand and less need to increase refinery
capacity to make more gasoline.
A shortage of refineries frequently has been blamed by
politicians for the sharp price spikes in gasoline.
This spring, refiners, hampered by outages, could not keep
up with demand and imports were down because of greater
fuel demand in Europe and elsewhere. Despite stable _
sometimes even declining _ oil prices, gasoline prices
soared to record levels and remain well above $3 a gallon.


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