Shell's Slow Down Leading Up to Labor Day; Huge Profits

[Dover]

Regulators Given Internal Shell Documents Showing Refinery Slow Down Leading Up to Labor Day; Huge Profits Reported At Bakersfield Refinery Slated For Closure

SANTA MONICA, Calif., June 21 /U.S. Newswire/ - The Foundation for Taxpayer and Consumer Rights (FTCR) is handing over internal Shell Oil documents today to the Federal Trade Commission and the California Attorney General that show Shell Oil is slowing down production at its Bakersfield and Martinez refineries for "routine maintenance" leading up to the busiest driving holiday of the year - a tactic to reduce supply also used by electricity producers during California's energy crisis.

A letter from FTCR president Jamie Court and FTCR petroleum consultant Tim Hamilton explain to the regulators -- who are both investigating the closure of Shell's Bakersfield refinery this fall -- the documents "provide incontrovertible evidence the company has once again misled California about its stated reasons for the shutdown of Shell's Bakersfield refinery."

Shell has said it was closing the refinery because it was not profitable, did not have enough crude oil and needed crude oil for its Martinez facility to the North, but the new documents obtained from whistleblowers disprove those claims.

The documents -- some of which are available for downloading at http://www.consumerwatchdog.org/utilities/rp/ -- show:

-- Profits at Bakersfield are extreme -- $11.4 million in May. Shell had stated that Bakersfield was closing because it was economically unviable and anticipated losing money at the refinery. After being confronted with internal documents showing a $5 million profit last year, Shell said such profits were not enough. This year already, according to the enclosed documents, Shell's profits from the Bakersfield refinery are $24.7 million...MORE >

http://releases.usnewswire.com/GetRelease.asp?id=116-06212004

[denverbill]

1. Thank god for whistleblowers.

I sure as hell hope California voters are paying attention to this.