Why Not Build More Oil Refineries?

Existing refineries have been expanded and are actually producing record output. They process about 17 million barrels of oil each day, but Americans consume about 22 million. The difference is imported. This tight supply is why a fire or unscheduled maintenance at one refinery spikes the price at the pump. So, with all the demand, why not build a new refinery?

“If you want to distill it down to one reason it’s probably money,” said Rao.

A new refinery would cost $2 billion to $3 billion. Today’s environmental regulations help keep our air clean but also make it much more expensive to run a refinery. Finding land is tough because nobody wants to live near a refinery.

WCCO