Why no one’s making more gas

Refineries are making money like never before, so why aren’t more people getting in on the action?

NEW YORK (CNNMoney.com) — Motorists must get tired of hearing how refinery problems are causing high gasoline prices.

In a free-market economy, if there really was such a shortage (most experts say there is), and refining profits are so high (any oil company earnings report will attest they are), then why aren’t people building more refineries?


The oil industry has long said refineries are too expensive, too hard to get a permit for, aren’t necessarily needed when the government is calling for a reduction in gasoline use, and take so long to build that gasoline prices could collapse by the time one comes online. Instead, they are boosting output through expansions at existing refineries.

Consumers don’t necessarily buy this, instead thinking the industry is in cahoots to restrict supply and reap massive profits.

CNN