Tuesday, May 29, 2007 | 7:01 a.m.
Oil company executives say motorists weary of paying more than $3 for a gallon of gasoline should expect to pay no less - and probably will pay more - in the future because of the government's push to increase supplies of biofuels.
A story by The New York Times on Thursday reports that oil companies that had planned to increase refining capacities are now saying they are being forced to cut back on those plans - largely because of President Bush's call for an increase in the use of biofuels and pending federal legislation that would require an increase in ethanol use.
Shell Oil Co. President John D. Hofmeister told the Times that if national policy "is to push for dramatic increases in the biofuels industry, this is a disincentive for those making investment decisions on expanding capacity in oil products and refining."
So as the price of gasoline nears an all-time high - the national average is $3.22 for a gallon of regular , which can cost as much as $4 per gallon in some metropolitan markets - the oil industry is digging in its heels.
Although it is true that the demand for gasoline has never been higher and new federal standards to make fuels cleaner to burn also make fuels cost more, it also is true that the industry takes advantage of every maintenance project or twitch in the delivery system to charge more for its product.
In an absurd turn of events, oil company executives are actually criticizing the policies of Bush, who is hardly at the vanguard of energy conservation. The executives have told the Times that the federal government's push to develop biofuel alternatives is making oil operations a financial risk that investors just aren't willing to take.
Get real. Gasoline consumption in the United States is at an all-time high, and the oil companies' profits are hardly hurting. The United States emits some 25 percent of the world's greenhouse gases - largely through carbon dioxide from tailpipes - and U.S. oil companies should be leading the way to cleaner alternatives, rather than fighting them.
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