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Originally Posted by eslai
The oil companies have known for YEARS that they were mandated to switch away from MTBE to Ethanol though. I have no sympathy for them, even though I'm no lover of politics.
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....BUT, the previously mandated MTBE additive was to be phased out later because of the environmental concerns, not right now. The production of Ethanol was being stepped up to create a greater supply for the changeover that was to come.
Unfortunately, the oil companies were being sued by environmental groups for using the
Congressionally mandated MTBE. The oil companies asked for immunity from the suits since it was Congress who required them to use MTBE and Congress, in its' infinite wisdom, said they would not provide immunity. Without immunity from lawsuits caused by Congress' stupidity, the oil companies had to avoid the costs of the lawsuits so they stopped using MTBE now, before the supply of ethanol had been increased.
Low Supply + High Demand = Higher Price.
Simple economics, which only a hand full of Senators and Representatives actually understand (along with probably about 20% of Americans thanks to the great education we have....thanks again to Congress).