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Old 06-18-2008   #3 (permalink)
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Re: Gas Prices

Yes, the NIMBY factor is a big one, but there are plenty of places that are not anyone's "backyard". I found an interesting article that discusses the issues with US refineries. I found it well worth the read.

U.S. refiners stretch to meet demand - Oil & energy - MSNBC.com

Quote:
There hasn’t been a new refinery built in the U.S. since 1976, the result of extremely tight environmental restrictions, not-in-my-back-yard community opposition, and the high cost of new construction. Used refineries currently sell for about 30 to 50 percent of the cost of building a new one, so it’s cheaper to buy an old refinery and upgrade it. Or squeeze a little more gasoline out of the refineries you already own.

Expansion of refining capacity is also made more difficult because oil refineries are a lot more complicated to build and operate than your average widget factory. For starters the raw material — crude oil — has many different properties, from thickness to sulfur content, so not all refineries can blend just any barrel of crude.


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