Are Oil Companies Increasing Pain at the Pump on Purpose?

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Although gasoline prices have stayed at more than $2 a gallon for the past seven weeks, the Shell Oil Company still insists on closing its big refinery near Bakersfield, cutting California-s gasoline supply by 2% and its diesel supply by 6. Shell maintains that the 72-year old facility is less efficient than other such plants, and that the crude oil supply in the San Joaquin Valley is running low, but politicians all over the West Coast want to know if Shell is really cutting back on supply in order to manipulate prices, driving them higher. Warren Olney speaks with State Senator Joe Dunn, economist Peter Navarro and Anita Mangles of the Western States Petroleum Association, about calls for an investigation into possible market manipulation and a look at how the oil industry is responding.
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Shell Oil Company on its closure of Bakersfield refinery

California Energy Commission

Federal Trade Commission

LA Times article on Shell refinery closure

Justice Department

Labor and Workforce Development Agency (SB 1236, 2002)

California Department of Industrial Relations

Department of Water Resources

Water Resources Control Board



Warren Olney


Frances Anderton