[River_Wrangler]

"If this is true, then higher crude prices are not all of the problem. Higher crude prices don't make the refining effort less expensive."

You are absolutely correct! There are only 42 gallons of oil in a Barrel of crude, ergo each incremental $1.00 rise in crude adds $0.023 to each gallon of gasoline. The problems are:
1)Lack of refinning capacity.
2)Distrabution difficulties due to different formulations.
3)Disincentive regulations.
4)Supply and demand.
5)And way down the list, Crude prices.

[Dog Gone]

There are only 42 gallons of oil in a Barrel of crude, ergo each incremental $1.00 rise in crude adds $0.023 to each gallon of gasoline.

You can't get 42 gallons of gasoline from a barrel of oil. It's more like 19 gallons of gasoline, the rest being converted into other petrochemicals and asphalt.

[Timocrat]

You are right. To expand on your number three. Until Bush, as Govenor of Texas gave them a waiver refineries couldn't implement upgrades unless they brought them up to 100% EPA standards, so a 70% improvement was sacrificed because it was not cost effective to pay for the 100% improvement. If Bush hadn't granted waivers to the Texas refineries the supply situation would be even more critical than it is today.

As an earlier post explained we have not built a new refinery for 27 years, ROI is lousy, NIMBYs prevent any increase in existing capacity. Added to the fact that we are not building enough electricity generating capacity and our natural gas supply is about to go critical, we are headed for an energy supply crunch in the not too distant future.

[skinkinthegrass]

"If this is true...5)And way down the list, Crude prices.

excellent points.. :)