Our Thorny Oil Patch
In 1982, the U.S. economy was served by 301 refineries. By 2007, the number had dwindled to 149. Productivity has kept output steady over the years at 17 million barrels a day. But the U.S. economy has grown by 125%.
"Valero believes there will never be another refinery built in the U.S.," spokesman Bill Day told IBD. He cited costs, environmental regulations, neighborhood activism and lawsuits.
Energy Policy: When America's biggest oil refiner contemplates putting almost a third of its refineries on the market, Congress should sit up and take notice. The business climate it has created is hurting our economy. Valero Energy Corp. is an industry leader that refines more oil than any other in the U.S.
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Valero will probably sell three of its 17 refineries this year and maybe two more later to focus on its core operations amid what CEO Bill Klesse acknowledged on Tuesday is a weak economy .
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At todays dollar prices it would be cheap for the Saudi's to own the entire American energy market !"snip
Upstream, oil drilling is off-limits, crimping supply and driving prices ever higher. Downstream, refiners are hit by not only high energy prices, but also bureaucratic regulations, environmental lobbies and special interests that make moving to Asia, where economic growth is still valued, more attractive.
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The sorry fact that no new refinery has been built in America since 1983 has been cited so many times that we would have thought someone in Washington would have done something about it by now. But no — it just keeps getting worse.
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