Gasoline Price Changes - Federal Trade Commission

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GASOLINE PRICE CHANGES: on the threshold of a moderately concentrated industry which typically does not support a claim that the industry is “interdependent.” 30. MIDWEST INVESTIGATION, supra note 1, Executive Summary. 31. Cook 8/2 at 67. See Montgomery 5/8 at 25 (supply shocks can lead to refinery scarcity rents). Nonetheless, the peak annual capacity utilization in recent years was in 1998, a year that was not associated with unusually high annual average refining margins. 32. Excess capacity is useful only if excess crude is available at the refinery to allow increased production. As discussed above, refineries operate with crude inventories lower than in the past, so even if excess capacity were available, it might take some time to obtain the crude needed to put that excess capacity online. Similarly, excess capacity is useful only if an adequate downstream infrastructure exists to deliver the gasoline to retailers. 33. “Other production” is the production of hydrocarbons/oxygenates and motor gasoline blending components, and fuel ethanol blended into finished motor gasoline. In 2003, PADD II had the highest volume of “other production” – roughly 82 million barrels; all other PADDs showed less than 30 million barrels in “other production.” 34. Changes in each region’s inventories of gasoline supply are added or subtracted, depending on whether gasoline inventories have increased or decreased; these changes also typically represent small numbers. 35. Coleman 8/2 at 128-29. 36. Sec. 27 of the Merchant Marine Act of 1920, 46 U.S.C. 883, 19 CFR 4.80 and 4.80(b). 37. U.S. INT’L TRADE COMM’N, PUB. NO. 3519, THE ECONOMIC EFFECTS OF SIGNIFICANT U.S. IMPORT RESTRAINTS, INVESTIGATION NO. 332-325 (3rd ed. 2002), available at http://hotdocs.usitc.gov/docs/pubs/332/pub3519.pdf. 38. CAL. ENERGY COMM’N, P600-03-014, GULF COAST TO CALIFORNIA PIPELINE FEASIBILITY STUDY (2003), available at http://www.energy.ca.gov/reports/2003-09-09_600-03-014F.PDF. 39. U.S. INTERNATIONAL TRADE COMMISSION, PUBLICATION 3201, THE ECONOMIC EFFECTS OF SIGNIFICANT U.S. IMPORT RESTRAINTS, SECOND UPDATE 1999, INVESTIGATION NUMBER 332-325 (May 1999). 40. PETROLEUM MERGER REPORT, supra note 29, 203-04 tbls.7-5 to 7-6. 41. Id. at 210. 42. Id. at 203-04 tbls.7-5 to 7-6. 43. Id. at 204 tbl.7-6. The Gulf Coast delivers most of the gasoline that the East Coast receives from other PADDs. See id. 44. Id. 45. Id. at 192 n.41. 46. Id. 47. Id. at 211. 100 FEDERAL TRADE COMMISSION, JUNE 2005
THE DYNAMIC OF SUPPLY, DEMAND, AND COMPETITION 48. Id. at 214 n.24. For example, Colonial has completed construction of an expansion into Knoxville, Tennessee, and has announced plans to expand capacity into eastern North Carolina and Virginia. Id. at 215 n.30. 49. Id. at 210. 50. Id. at 204 tbl.7-6. 51. Id. 52. Id. at 213 & n.19. 53. Centennial No Panacea for Gasoline Crunch, OIL DAILY, Mar. 29, 2002. 54. Press Release, Explorer Pipeline, Expansion complete; pipeline already at capacity (Jan. 6, 2004) (on file with author, at http://www.expl.com/news/16200435496.htm). 55. PETROLEUM MERGER REPORT, supra note 29, at 213. The MidAmerica and TEPPCO pipeline systems also transport gasoline from PADD III to PADD II. Id. at 211. 56. Id. at 204 tbl.7-6. 57. Id. at 184-85. 58. Id. at 203-04 tbls.7-5 to 7-6. 59. Id. at 210. 60. Id. at 213. 61. Tony Illia & Tom Armistead, $2-Billion Petroleum Refinery in Arizona Would Be First in 28 Years, MCGRAW HILL CONSTRUCTION ENGINEERING NEWS-RECORD, Nov. 1, 2004, at http://www.construction.com/NewsCenter/ Headlines/ENR/20041101e.asp. 62. PETROLEUM MERGER REPORT, supra note 29, at 196. 63. See EIA, PETROLEUM CHRONOLOGY OF EVENTS 1970-2000 (May 2002), at http://www.eia.doe.gov/pub/oil_gas/ petroleum/analysis_publications/chronology/petroleumchronology2000.htm. 64. Larson 5/8 at 73, 79-80. 65. CAL. ENERGY COMM’N, NO. 100-03-013F, TRANSPORTATION FUELS, TECHNOLOGIES AND INFRASTRUCTURE ASSESSMENT REPORT (Subsidiary Volume of Integrated Energy Policy Report, 2003), at www.energy.ca.gov/ reports/100-03-013F.PDF. 66. PETROLEUM MERGER REPORT, supra note 29, at 196. 67. Gasoline with low volatility is required in some areas to reduce emissions of volatile organic compounds to help reduce ground-level ozone. 68. The spot prices for RBOB do not include the net cost of ethanol that must be blended with the gasoline before it CHAPTER 4: THE REGIONAL LEVEL 101
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Federal Trade Commission DEBORAH PL
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GASOLINE PRICE CHANGES: The vast ma
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GASOLINE PRICE CHANGES: $ The World
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GASOLINE PRICE CHANGES: expect incr
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GASOLINE PRICE CHANGES: Figure 3-6:
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GASOLINE PRICE CHANGES: $ Increased
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GASOLINE PRICE CHANGES: $ Since 199
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GASOLINE PRICE CHANGES: increase lo
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GASOLINE PRICE CHANGES: England and
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Table of Contents EXECUTIVE SUMMARY
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C. In 2004, the Geopolitical Outloo
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CHAPTER 4: SUPPLY, DEMAND, AND COMP
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3. Gasoline prices in the East Coas
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CHAPTER 1. SUPPLY (INFLUENCED BY OP
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To obtain the additional supply the
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THE DYNAMIC OF SUPPLY, DEMAND, AND
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Price (Cents per Gallon) 220 200 18
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words, short-run demand for gasolin
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Endnotes THE DYNAMIC OF SUPPLY, DEM
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CHAPTER 2. WORLDWIDE SUPPLY, DEMAND
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Thousand Barrels per Day 18,000 16,
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Million Barrels per Day 0.9 0.8 0.7
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such as ethane, ethylene, and propa
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CHAPTER 3. SUPPLY, DEMAND, AND COMP
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Year-over-year Percentage Change in
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Page 99 and 100: Price Difference (Cents per Gallon)
Page 107 and 108: Millions of Barrels 1,500 1,250 1,0
Page 111 and 112: Millions of Barrels per Day 9 8 7 6
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Page 131 and 132: CHAPTER 5. STATE AND LOCAL POLICIES
Page 133 and 134: Percentage of Customers Lost to 1%
Page 135 and 136: Retail Price (cents per gallon) 220
Page 137 and 138: Share (Percent) 80 70 60 50 40 30 2
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Page 157 and 158: 6. GAO, supra note 5, at 20. 7. Id.
Page 165: Herfindahl-Hirschman Index (HHI) Th
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