Push for increase in biofuels causes oil industry to scale back
WASHINGTON - A push from Congress and the White House for huge increases in biofuels such as ethanol, is prompting the oil industry to scale back its plans for refinery expansions - which could keep gasoline prices high, possibly for years to come.
With President Bush calling for a 20 percent drop in gasoline use and the Senate now debating legislation for huge increases in ethanol production, oil companies see growing uncertainty about future gasoline demand and little need to expand refineries or build new ones.
Oil industry executives no longer believe there will be the demand for gasoline over the next decade to warrant the billions of dollars in refinery expansions - as much as 10 percent increase in new refining capacity - they anticipated as recently as a year ago.
Biofuels such as ethanol and efforts to get automakers to build more fuel-efficient cars and SUVs have been portrayed as key to countering high gasoline prices, but it is likely to do little to curb costs at the pump today, or in the years ahead as refiners reduce gasoline production.
Car in Tenn. charity parade loses control, kills 4 people SELMER, Tenn. - Investigators were trying to determine what caused a drag-racing car to lose control during a parade and careen into a crowd, killing four people and injuring up to 15 others.
The crash occurred Saturday night during an "exhibition burnout" at the Cars for Kids charity event in Selmer, located about 80 miles east of Memphis, according to a drag-racing organization. A burnout is when a driver spins a car's tires to make them heat up and smoke.
Witness Scott Henley said the vehicle started burning off its tires, then began to fishtail and slammed into a utility pole before spinning around into the audience.
Selmer Police Chief Neal Burks said, "bodies were flying into the air when it happened."
Compiled from Associated Press reports
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