If the problem is oil refineries why haven't they built anymore?

Answer 1

The love of money is the root of all evil.

Answer 2

We've had thirty five years since the OPEC oil shortage in the early seventies, we still have no shortage of oil, there is none. Look up Saudi Arabia's estimates, they can supply the current level of oil to the world for the next sixty years without developing new sources. That's one country. The environmentalists haven't blocked a one, know why? No oil company has applied to build one in over thirty years. Not a one. If all of the oil companies that existed here in the seventies had built just one each, we would have a least a dozen other refineries in existence. Not one. Profits, keep demand high and supply artificially susceptible to everything.

Answer 3

Lack of refining capacity does add to the price of gasoline in the USA, though, it'd still be high even with adequate capacity, due to the high cost of crude - just not as high.

Oil refineries take a long time to build, and, through most of the 90s, oil and gas prices were low - too low to make such an investment worthwhile. In addition, there's substantial resistance from environmentalists when it comes to building refineries, power plants (especially nuclear ones) and the like. Finally, opening refineries overseas, where labor is cheaper, and importing the finished products has begun proving more profitable - even though the end result is higher gas prices for the American consumer.

So: money, politics, and money.

Answer 4

Oil Refineries are expensive to build. The oil companies are making a fortune the way that things are and since money is what "fuels" capital investment, there is no real need for them to build new refineries. Yes Yes Yes... the environmental lobby would oppose new refinery construction but it would silly to try make an arguement that its the fault of tree huggers.

If demand for oil keeps growing and the price barrel (gallon ??) goes way up, the Oil Companies will start building refineries faster than bunnie rabbits mating .....

Answer 5

After spending 30 years in that industry my answer in NIMBY...not in my back yard. No town or county that fits the needs of a refinery wants to have a refinery built in their town/county. That is the number one issue that is way out ahead of all of the rest.

Answer 6

Because of the EPA, it is soooo incredibly expensive to build one in the US now that no oil company will do it. I don't think there has been one built in the US since the 70s. We are dependent on refined products from other countries. We have the oil we don't have the refineries to make oil useful.

Answer 7

Sorry but the problem is OIL refineries. Hey....I'm still wondering. I'm really concerned about this corn fuel. Number 1...ethanol isn't cheaper. Number 2.....gas or milk, gas or bread, gas or eggs.???? To me...it's not a real alternative when it takes the food out of your mouth to roll down the road.

Answer 8

They are block by lawsuits from building more refineries. EIS process takes Five Plus Years to get through assuming you get past that step the a few more years to build the Refinery.

And why the renewed interest in using moonshine for fuel?

Answer 9

Because (and I am not sure of the correct year) environmental restrictions that are in place have really tied up the authorization of more refineries.

Answer 10

Why don't you ask the treehuggers that threaten to sue anywhere an oil refinery site is considered?

Answer 11

Supply, and demand - it would make the price go down. We need to get off the oil kick anyway, it's not sustainable.