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To: KLP who wrote (253517)	6/7/2008 3:45:58 PM
From: Nikole Wollerstein	Read Replies (1) \| Respond to of 793838

With gasoline consumption in the decline do we need new refineries?

To: KLP who wrote (253517)	6/7/2008 7:40:30 PM
From: Alastair McIntosh	Read Replies (1) \| Respond to of 793838

Here is a press release from the Refiners Association: npradc.org Annual NPRA Report Shows Continuing Increases in New Refining Capacity WASHINGTON, D. C. – NPRA, the National Petrochemical & Refiners Association, today released its annual United States Refining and Storage Capacity Report. The report contains data supplied by the Energy Information Administration on the crude oil capacity of U.S. petroleum refiners. As of January 1, 2007, there were 149 operable refineries in the U.S. (excluding Puerto Rico and the Virgin Islands) with a total crude distillation capacity of 17.4 million barrels per calendar day (BPCD) and 18.4 million barrels per stream day (BPSD). Domestic refining capacity increased 0.6 percent from 2006 to 2007, 3.9 percent over the last five years, and is up 12.9 percent over the last 10 years. “Increased capacity is an important indicator of a strong refining industry, and this year we’ve continued the trend of adding more capacity at existing facilities,” said Charles T. Drevna, NPRA Executive Vice President. “While it’s true that a brand new refinery hasn’t been built since 1976, we’ve actually, on the aggregate, built the equivalent of one new world-class refinery each year for the last 14 years. It is, however, becoming more of a challenge to add capacity at existing sites because of more stringent environmental regulations, and the complexity and uncertainty of the permitting processes. “Another notable challenge is the conflicting messages we receive from policymakers who on the one hand call for more refining capacity, but on the other want to cut gasoline consumption by 20 percent or more over the next decade. Refiners make their reinvestments today based on where they see demand headed. If policymakers take actions that significantly decrease consumption, domestic refiners will naturally consider the wisdom of investing in new capacity or facilities only to have those investments stranded in a decade or less.”