In an interview with the Detroit Free Press, chief economist John Felmy for the American Petroleum Institute explains that current high gas prices and oil profits are not unreasonable once consumers understand the information. Of course, considering Mr. Felmy's employer we can't guarantee his views aren't just a little biased.
He says profits, for example, average 7.7 cents on the dollar. He goes on to say existing refineries have actually expanded in capacity despite smaller ones closing back in the Eighties. Felmy dismisses the notion that oil companies have been in collusion to either limit supply or fix gas prices or both, pointing to the microchip industry as an example of similar intense competition.

The full list of questions and Felmy's responses can be found at the link.

[Source: Detroit Free Press]

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