I might agree with you, except that my husband worked for the railroad for years, and I learned a little about the amount of fuel trains use. The fact is, we need a safe, renewable source of clean energy and we will not look for one as long as oil is King in this country.
You are partly correct, but the about Cal refusing new or expanded refineries needs comment. If refinery capacity is that valuable & hard to come by, why is Shell shutting down a 60,000 bbl/dy refinery there, refusing to sell it to another firm willing to operate it?
IMO, the biggest issue w/ gas is the lack of refinement capacity.
The oil companies are playing hard-ball - I think they want regulations relaxed and they can wait forever with the current profits they make, as they continue to run their shrinking refinaries at 100% capacity.
Wholesale gasoline in New York is $1.37/gal on the NYMEX. 0.98/gal is from crude ($41/bbl) while the rest is the gas crack or gross margin a refiner makes. The $2.00 is somewhat skewed because of high prices in CA vs the rest of the market because of a very restrictive gasoline blend and their refusal to allow new refinery or any refinery expansion. ALSO don't forget taxes on gas average $0.40-.50/gal and is not insiginifant. The banning of MTBE in CA, NY and CN has also caused problems because of the high price of ethanol and the increased costs an hassles of blending it.