High Gas Prices: response to Senator John Cornyn

Texas Refinery Expansion Will Fund Terror

Senator Cornyn’s recent press release touts that the increased refining capacity at the Motiva refinery in Port Arthur, TX will and I
quote “ increase national and economic security.” Senator Cornyn further states, “The proposed Motiva refinery expansion is a
tangible step forward on the path to US energy independence. This expansion project would be a historic accomplishment for
America energy security and serve as yet another feather in the cap of Texas production.”

Richard Clough, the author of The Truth Behind High Fuel Prices, disputes Senator Cornyn’s claims. Richard contends that the
expansion of this refinery will continue to fund terror around the World and will hurt the United States economic security, national
security and energy independence. Senator Cornyn’s statements are misleading to Texans and American consumers, and let me
tell you why?

Motiva is a company that is 50% owned by Saudi Refining and 50% owned by Shell Oil; and neither one of these companies care
about U.S. national security, economic security or our energy independence. Royal Dutch Shell has major investments (in the
billions) with two countries, Iran and Syria that do not like us. Iran and Syria are recognized by the US as countries that sponsor
terror. Yet, Royal Dutch Shell continues to contribute to the welfare of these countries by being major contributors to their oil
industry. If Royal Dutch Shell cared about our economic and national security, they would not continue to bury their heads in the
sand and contribute billions of dollars to Iran and Syria.

Now what about Saudi Arabia? Are they a friend of the US or do they just want our oil money? Total imports into the U.S. from
Saudi Arabia in 2006 totaled about $32 billion, with Shell being their best customer. What does Saudi Arabia do with the money
that U.S. consumers give Shell and Motiva? Mia Bloom in an article for the Los Angeles Times reports Al Qaeda views Saudi
Arabia as its primary source of money for global Jihad. Jihad is a holy war against Infidels, and an Infidel is anyone who is not a
Muslim. The LA Times also reports that about 50% of the suicide bombers in Iraq are from Saudi Arabia. Remember September
11? Fifteen of the 19 terrorists or (cowards) who attacked this country were from Saudi Arabia. Saudi Arabia is considered by
many as the engine of Jihad.    Why is this? You can look straight to Islam and the interpretation of the KORAN where Muslim’s
are ordained to fight, kill the unbeliever, fight until the persecution stops and religion is only for Allah. This is what Saudi’s teach in
their educational system and this is why you see so many Saudi’s attacking us here in the US and in Iraq.

Importing oil from Saudi Arabia to be used in a Saudi and Shell owned refinery in the US will not do anything for US energy
independence or help Texas energy production! The expansion of the Motiva Refinery will not do anything to lower gas prices,
help us gain economic security, national security or energy independence. It will only give more money to two companies who
contribute to the welfare of terrorists. I completely and wholeheartedly disagree with Senator Cornyn and ask him to explain or
clarify his statements and position.

Richard Clough

With gas and diesel prices at an all time high Senator Cornyn's office issued a release calling for a bipartisan energy plan that
would provide “meaningful relief” to American consumers. This is an amazing statement seeing how the Republicans controlled
Congress for six years and did nothing to help reduce our dependence on foreign oil or curtail the rising price of fuel. With all due
respect to Senator Cornyn, he and the Republican leadership did nothing to help American consumers with fuel prices or this
country with its dependence on foreign oil. Senator Cornyn must lack knowledge of how this industry works or he is playing politics
with the American people.

I would like to address two of Senator Cornyn's solutions to our rising gas prices.

1.       Increase domestic refining capacity.

This would work if we could force refiners to do this. We can not even get refineries to use the capacity they already have. For
example the Energy Information Department is reporting refinery utilization at 85% in February, 86% in March and 88% in April.
Why aren't utilizations rate like they were in 1997 or 1998 when they were reported at 95% or in 2003 when they were reported at
92.5%? I am sure the oil industry has their excuses and I challenge these excuses in chapter 8 of my book “The Truth Behind
High Fuel Prices.” I even question these reported utilization percentages. Why? Because these numbers are reported by oil
companies to the Department of Energy.   There is no physical check of the refinery by a government employee or a third party to
ensure the accuracy of their reports. After all, several of the major oil companies have had accounting problems in the past. Can
they be trusted?

I do not know where Senator Cornyn is getting his information that this country has 132 refineries. A quick check on the Energy
Information website www.eia.doe.gov shows there are 142 operating refineries and 7 idle refineries. In 2001 strong evidence was
presented to Congress that major oil companies were manipulating refinery fuel supply to increase price. Nothing was done then
and this issue of manipulating fuel supply is still with us today six years later.

2.         The only way we will see prices come down is to form new supply.

I agree with Senator Cornyn that we need to form new supply from several sources beside petroleum based products. My choices
are ethanol, hydrogen, solar, electric, and biodiesel. But I believe we will only see prices come down when we have a competitive
market place with companies aggressively pursuing customers.   Since 1991 the US oil industry has had 2600 acquisitions, buy-
outs, joint ventures, alliances and mergers. These government allowed mergers in the oil industry have created five of the largest
companies in the world. These mergers were supposed to give customers better prices and service. Have they? These mergers
have created great market power for five companies that control 62% of the US market. Again my book, “The Truth Behind High
Fuel Prices” has repeated examples of documentation citing collusion and market manipulation If we truly want dependence from
foreign oil and lower prices for consumers then we need to follow the seven steps found in my book.

Richard Clough