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Energy Prices: Environmental Regs Re-imposed

Gas prices have been rising but there is very little information as to why. I just got word that the environmental standards that were relaxed for six months after Hurricane Katrina have been re-imposed.

We have heard that refineries had to shut down for maintenance, but no one mentioned why. Oil inventories are still high, so we know that higher prices were not due to the supply of crude. Also, the U.S. is shifting away from MTBE and toward ethanol, and refineries have to shut down to reformulate.

Another problem is finding ethanol. Since ethanol is made from corn, there are no inexpensive ways to transport the product, and prices will probably continue rising as the summer driving season approaches.

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