While I agree that supply & demand play a primary role, take a look at oil company profits. Who is it that builds refineries anyway? I'd also ask who is supplying our leadership? Are thay connected with the oil industry?
You bet. Oil companies are making huge money, because the buyers are bidding up the price. If you were in the company's shoes and a buyer says he'll pay the going rate of $70 per barrel for your product, would you say, "No, no, that's too much. $35 is fine. "? I have a cousin who works for Chevron. He says they're raking it in, and every dime is being put back into finding and extracting more crude. And yes, they build refineries, as do other companies (Valero, for instance). But due to environmental regulations and the "not in my backyard" attitudes, none have been built in this country for years. It's not really the refinery company's fault.
Vaughn,
The difference in prices is due to several factors, the state's tax rate on gas, the state's requirements for custom blends for polution control (California is big on that), and where it comes from. Certainly those stations closer to refineries are generally cheaper than those farther out. Now Calif. seems to be go against that rule since they have refineries along the coast, but they also have huge demand and special requirements for polution control (which the West coast states are soon to adopt, I've heard, so be prepared for higher-cost gas down the road). Where does Pasco get its fuel? Calif? The terminal in SLC? Is it piped or trucked in? Someone here said ours comes from Alaska. In any case, all that transportation adds to the cost.
Also, who supplies Flying J's gas. Does Flying J have its own wells and refineries? Probably not. So they buy it from the big guys (Chevron, Shell, Exxon, etc. ). But the big guys are keeping it for themselves right now. All the independents are having to buy it on the open market, and they're paying a premium for it.
As for this weekend, I think what we're seeing is the "perfect storm", literally and figuratively. Labor Day weekend which always has huge demand, made worse by a bit of panic buying last week, along with the gulf storm which clipped supply.
As for the connection between Bush the industry, that's open to debate. Certainly I think his trend is to make it easier for the oil companies to do business, but I sincerely doubt any of his policies have caused the current situation.
Just my opinion, of course, and we all know what that's worth
-Jay