Vince
Thanks for the update. It pretty much supports what went down (along with the octane ratings, lol) except for a few details.
" Unocal had a bunch of patents on how to formulate 92 octane. Most of the oil companies share in how they develop fuels but Unocal basically had a particulary (sp?) difficult process. For the other companies to adopt their process to get the newly mandated 92 octane, would raise the price per gallon about 5 cents."
The Business End of this
TOSCO (Unocal) had the patent for the formula and was charging the other oil companies that nickel per gallon for the rights. All the other oil companies had their backs against the wall with an unreasonable government imposed deadline to meet and had no choice but to pay TOSCO until they could figure out an alternative. While all this was going on, TOSCO was negotiating the sale of Unocal. In a major business coup, TOSCO managed to sell off Unocal at a premium (pun intended) price but managed to keep their rights to the MTBE high octane formula.
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"He also explained to me "why" gas is so expensive which was a very interesting conversation."
That would be very interesting to hear, although I believe that this country pays less per gallon of fuel than any other country in the world.
Thanks for the update. It pretty much supports what went down (along with the octane ratings, lol) except for a few details.
" Unocal had a bunch of patents on how to formulate 92 octane. Most of the oil companies share in how they develop fuels but Unocal basically had a particulary (sp?) difficult process. For the other companies to adopt their process to get the newly mandated 92 octane, would raise the price per gallon about 5 cents."
The Business End of this
TOSCO (Unocal) had the patent for the formula and was charging the other oil companies that nickel per gallon for the rights. All the other oil companies had their backs against the wall with an unreasonable government imposed deadline to meet and had no choice but to pay TOSCO until they could figure out an alternative. While all this was going on, TOSCO was negotiating the sale of Unocal. In a major business coup, TOSCO managed to sell off Unocal at a premium (pun intended) price but managed to keep their rights to the MTBE high octane formula.
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"He also explained to me "why" gas is so expensive which was a very interesting conversation."
That would be very interesting to hear, although I believe that this country pays less per gallon of fuel than any other country in the world.
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