[Morgan in Denver]

Thank you again. My wife and I are both involved and interested in O&G so the link alone was more than appreciated.

Reading a past article, I was surprised in his saying the lack of refineries was a myth. I disagree with that but it's more involved than the question or answer suggests.

Morgan

[thackney]

I was surprised in his saying the lack of refineries was a myth.

That is not exactly what he said.

His myth was "US refining capacity is flat."

This is usually preceded by, or is at least the intent behind, the frequently used statement, "There hasn't been a new refinery built in the US in 30 years." The number of refineries is not particularly important.

Refineries have been expanding within and around their existing locations, and efficiency is also up. As Fig. 5 shows, refining "capacity," however defined, has been trending upward nicely over the last 15 years.

Fig. 5. Capacity and inputs steadily rise.

The US currently refines 15.5 million barrels per day.

Refining and Processing, Weekly Inputs, Utilization & Production, EIA

We import about 2.2 million barrels per day of Gasoline, Kerosene, Jet Fuel and Distillates including diesel and fuel oil.

Weekly Imports & Exports, EIA

We produce about 5 million barrels per day in oil.

Crude Oil Production

We import about 10 million barrels per day in crude oil. There is a shortage in both, but the refinery shortage doesn't come close to the shortage we have in crude oil production. Refining does not generate near the taxes or royalty payments that we send in the billions of dollars to foreign governments. We need to open up our nations resources to production and quit letting the environmentalist hold us hostage and fund our enemies.