The End of Gas?
When gas prices soar, I guess it’s only a matter of time before complaints and government investigations ensue. But what’s interesting about the current spate is how it reflects the transformation underway across he country as ExxonMobil, BP and Shell sell off their gas stations to regional middlemen, known as “jobbers.” This time around, it’s not Big Oil or the little station operators who are taking the heat for price gouging; it’s the jobbers.
While the price spikes have drawn lots of attention, perhaps more interesting in the long-term is what the (until now) relatively unnoticed round of selloffs may lead to: the eventual disappearance of local fueling depots altogether.
What with predictions of peak oil, the rise of alternative fuels and electric cars, Joe Mamo, D.C.’s biggest jobber, told me his company, Capitol Petroleum Group, is really a real estate business. As his properties in Washington and New York City become more valuable for the “dirt” beneath them than the gas or junk food they can sell, he says they will become condos.
Whether this trend could contribute to the high cost of gas in D.C. and other urban areas is a question I don’t think anyone has seriously examined. It’s not an industry that gets much sustained scrutiny (beyond the occasional price gouging uproars). My profile of Mamo, which ran in the Washington City Paper in February, is one of the few (perhaps the only) in-depth look at Big Oil’s pullout from a major metropolitan marketplace. The Washington Business Journal suggested it helped prompt the District’s anti-trust investigation of Mamo’s company.