"Mike Rapoport" wrote in message
k.net...

"Matt Barrow" wrote in message
...

And gasoline is up 25% (6600-8800Mbbl).

Yes, everything is up, gasoline, diesel, heating oil, kerosese but people
say that enviornmental regulation has prevented capacity expansion. It
simply isn't true.

Well, the article says no such thing regarding EXPANSION, though it does
mention the $$billions spent over the last ten years complying with
environmental regulations at EXISTING refineries.



14% of US usage.

Yes and it is important to recognize that if oil exporters build
refineries to capture downstream revenue and export gasoline (instead of
crude) that expanding US refining capacity accomplishes nothing. If the
Candians start exporting lumber instead of logs should the US build more
sawmills? It is the same thing.

Well when lumber becomes much more dangerous and expensive to transport they
should. Also, if EPA regs forbid making lumber, then what?




You may not have said it, but you presented an article that claims that
refining capacity is down from 18.6MM bbl to 16.9MM bbl. I agree that
*this quarter* we are too geographically concentrated but these are
supposed to be 50yr storms. The refineries are on the Gulf Coast because
that is where imported crude arrives and land is cheap. It makes sense to
locate the refineries in what are the best locations the overwhelming
majority of the time instead of moving them somewhere else.

And how many are hitchhiking on the San Andreas fault?


The "lack of refining capacity"

That's your point, not mine nor the point of the IBD article. The point
is that our capacity is constrained and cannot grow enough to meet
growing demand.


The article is allegedly the source of the reduction of refining capacity
from 18.6 to 16.9

Pardon? What is the source of the reduction?



Well, let's let the market decide how much is enough, okay?

I'm for that. I expect to see ongoing increases in capacity as we have
every decade for the past 100yrs.

Well, if # of refineries had slipped 55% and total capacity has slipped 10%,
that trend is no longer in place.

If the trend continues, in 100 years we will have one refinery. Just how
much can you expand production?