High real estate prices on the west coast have halted refinery construction
there as much as anything else. All factors are in play of
course...permitting requirements, local opposition, tax climate, the price
of steel, the non-desirablility of living next door to a refinery. When all
these variables are considered, there is a price level where a new refinery
will be built. When we get there, the refinery will be built.

Mike
MU-2


"Jay Honeck" wrote in message
news:Ra1sc.10707$af3.571010@attbi_s51...
When it is profitable enough then more refining capacity will be built.
On
the production side, the market is telling you that it is not very
attractive to drill at recent prices.

I was under the impression that restrictive EPA regulations had
essentially
halted new refinery construction?
--
Jay Honeck
Iowa City, IA
Pathfinder N56993
www.AlexisParkInn.com
"Your Aviation Destination"