As prices plummet at the gas pumps, Utah’s oil refineries aren’t diclosing how much money they are making.
Utah’s five oil refineries snubbed official requests for financial information — even inquiries that were part of an investigation ordered by Gov. Jon Huntsman Jr.
A Utah official says refineries are refusing to cooperate with a state probe into gas prices and are gouging consumers.
“The refineries essentially flipped us off and said, ‘We’re not giving you any numbers,'” says Francine Giani, executive director of the Utah Department of Commerce, who led a state probe into gas prices. The Salt Lake-area refineries, she said, have demonstrated a wholesale disregard for any requests for information. “They don’t want consumers to know exactly how much they are making.
“Are we getting gouged? The answer is still yes,” Giani said.
Meanwhile, oil officials in Duchesne and Uintah counties also allege the refineries have reduced the amount of “black wax” crude oil from eastern Utah producers they will process in favor of the cheaper, easier crude imported by express pipeline from Canada.
In addition, Utah producers say refineries are now paying less than ever for the “black wax” product, so named for its high-paraffin, sludgy consistency. This type of crude doesn’t travel well — it essentially congeals into solid wax like a candle — so it really can’t be trucked farther than the two to three hours to the Salt Lake area refineries.
“We’re held hostage,” said John Jurrius, financial adviser to the Ute Indian Tribe and its growing oil interests.
So, in an environment where national energy experts are lamenting lagging production of domestic oil, local producers say they have no place to send their product.
Deanna Dee-Dee Taylor 