Energy Politics

N.Y. Respresentative Maurice Hinchey recently said, “We (as in the government) should own the refineries. Then we can control how much gets out into the market.”

Mr. Hinchey, please grow up. Do you really want the government to be in charge of refineries? I know that high oil prices and having angry New Yorkers as constituents are influencing this kind of rhetoric, but really, that’s really just the first step toward nationalizing our oil supplies.

Do you know what kind of problems you have to deal with when you have state-run oil industry? First, the oil industry immediately becomes a social tool. The government will want to redistribute profits from the refined gas to pay for social programs. So crucial money needed to run the factories will instead by spent on bridges that go to nowhere and well-meaning but poorly-planned social services that only further encourage people to become more dependent on government to solve all their problems.

Second, the companies would no longer be run by profit-minded corporate executives. Instead, you’d have government appointees in charge. The kind that get cushy government jobs because they’re friends with the president or something. Which means that like with other government appointees, sometimes you get someone who knows what they’re doing and will at the very least run the refinery competently, and sometimes you’ll get some hack who will defer all decisions to his subordinates.

Finally, since this is government we’re talking about, odds are the refineries will fall into disrepair since the regulatory agencies will be working for the same people as the facility owners, so they can’t be too harsh with their criticism of plant conditions, etc.

Nationalizing refineries? No sir, Congressman Hinchey. Return to the fantasy-land that you came from and instead push for refinery expansion or, God forbid I say this in the 21st century, BUILDING NEW REFINERIES!

–Stephen Payne, Editor, Oil and Gas Investor This Week; www.OilandGasInvestor.com; spayne@hartenergy.com

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