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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Alastair McIntosh who wrote (253547)	6/8/2008 1:59:47 AM
From: KLP	Respond to of 793843

The article I referenced previously said this: Over the last quarter-century, the number of refineries in the United States dropped to 149, less than half the number in 1981. Because companies have upgraded and expanded their aging operations, refining capacity during that time period shrank only 10 percent from its peak of 18.6 million barrels a day. At the same time, gasoline consumption has risen by 45 percent. BTW, I think we are currently using 21 Million barrels a day, not 18.6. Of course this would mean that the refineries that are processing 150,000 or 300,000 or even 500,000 barrels a day, aren’t more than a drop in the bucket toward our overall need. And from the article you just posted, these are the important statements, IMO. But then, WDIK?? 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.”