The issue here would seem to be lack of U.S. refinery capacity. Our regulatory burdens make new construction and ongoing compliance a nightmare.
I do not think so. The US already refines more product that we use ourselves. We have surplus capacity.
We import more oil than we need for domestic demand, refine it and export the surplus products. Some of that is refinery "leftovers", the bottom of the barrel after higher quality fuels like gasoline and diesel have been separated out. Petroleum Coke and Residual Oil are examples of those.