Why can't the U.S. build enough refineries to help alleviate the "supposed" gas shortage ?

Question

Because if they did Exxon wouldn't be able to make their record profits. This is not an issue of being screwed by Republicans or Democrats as they are both equally guilty and are both lining their pockets at the American public expense. People love to pin the blame on Bush and his oil buddies, but do you meant to tell me that Democrats, such a Pelosi or Kennedy aren't making money off of this. We're being robbed !!!! The oil companies are creating false shortages just so they can jack up the price.

http://news.yahoo.com/s/ap/20070427/ap_on_bi_ge/oil_prices

Answer 1

Building a refinery takes time, it takes running a gauntlet of federal environmental regulations, it takes aproval for the locality where it is being built. And, once you've built it, you have to run it profitably - using expensive American labor, and compling with all those pesky American laws.

In the long run, it'll may well become more profitable to import rifined products than do refining in the US, so the industry could be letting it's refinery operations in the US 'wind down.'

Also, in the 90s, expectations were that US gasoline demand would not rise as much as it has. The population was supposed to be declining, or at least growing more slowly, milage standards were higher, CA was even requiring admission-free vihicles to hit the rode in the near future. And, oil and gas prices were comparatively low. So the prospect of building refineries probably wasn't too attractive back then. Today, however, the US population has been suplemented with imigration (particularly illegal immigration), milage standards were undercut when the US consumer shifted preference towards massive gas-guzzling SUVs, and the CA legislation was gutted.

Result: higher than anticipated demand meets neglected production capacity.

Answer 2

You are right about what you said but I want to make a slight correction. We actually had enough refineries it is just that they have closed alot of them down then they say "oh we are running low on gas" That is how they do it. See most people live on their short term memory so the the news uses that. The stories are designed to remember for about a day or two and then the average person forgets about it. Don't worry I do it too sometimes.

Answer 3

Jeez, take a valium.

I work for the government, and it's taken us FOUR YEARS to get a damned sidewalk approved because it goes through a "marshy" area. I can't imagine what hell Exxon (or Amoco/BP or Shell) go through trying to get a refinery built.

The government is killing U.S. competetiveness through regulation. If you believe that Americans are responsible for the World's pollution, I invite you to spend two weeks in China (as I have) or another "developing" country. Those places don't give a damn about the environment, and laugh their collective asses off at us while we worry about some damned spotted frog and give away our industrial might to the far east.

Maybe it's ME that needs the valium...

Answer 4

It is hard to build refineries when there is a lack of crude oil to refine. I'm inclined to agree with you about most of the politcians (Dem and Rep) and CEO's making money off overcharging us, but at the same time, I am also inclined to believe that we as humans overuse our resources, and we may well be running out of oil.

Answer 5

Refineries can't make gasoline out of nothing. If nothing goes in - - nothing comes out. Come on now , that wasn't too hard to understand, was it ?
Using your arguement, where there's a shortage of water, we should make more faucets. That would do it.

Answer 6

your mixing issues, cowboy. As to your first question.

No new refineries have been built in the last 40 years in the U.S. largely because of the ease of tieing up projects in bureaucratic redtape of the permitting process and local NIMBY opposition to refineries (NIMBY = Not In My Back Yard, i.e., put it elsewhere).

Answer 7

Without the "shortage" the enviromentalists wouldn't get paid

Answer 8

Maybe it's those pesky terrorists and liberals . If they didn't have to keep pushing them back..there might be extra time for other projects..As for President Bush's "buddies"..the poor man is lucky if he even gets to make "buddy time" .

Answer 9

It is OK what you are saying, however, it is a Republican and Democrat Issue, because involves the interest that these power mongers in either party, have invested. Remember, that oil is involved in many industries , not only auto fuel.

Answer 10

There are also EnviroNuts that wont allow any more refineries to be built. Thats a fact.