Democrat Calls for Public Pressure on GOP to Change Energy Policy

My understanding is that it's really the refining capacity rather than the availability of crude oil that is the major constraint.


Behind high gas prices: The refinery crunch
When gasoline prices surge, a lack of refining capacity is often blamed. What's being done, and is it enough?
By Steve Hargreaves, CNNMoney.com staff writer
April 17 2007: 3:43 PM EDT
http://money.cnn.com/2007/04/17/news/economy/refineries/index.htm


NEW YORK (CNNMoney.com) -- It's the same story every year.

Each spring, just before the summer driving season, gasoline prices skyrocket. And every year, these four words appear in news reports nationwide as a big reason for the runup: "lack of refining capacity."

Then experts call for more refineries, politicians pledge to make the dirty behemoths easier to build, but guess what? Nothing really happens. Next year, repeat story.

So why hasn't a new refinery been built in the U.S. since 1976?

"There have been calls every year this decade for new refining capacity, yet no new projects initiated," said Geoff Sundstrom, a spokesman for AAA, the motorist organization. "Refining capacity has not kept pace with demand for gasoline."
Exxon: The defiant one

Numbers from the government prove Sundstrom correct.

In 1995 American drivers burned about 17 million more gallons of gasoline a day than the country produced, according to the government's Energy Information Administration. The difference was made up for by imports.

By 2005, the latest figures available, the gap had widened considerably to about 36 million.