I don’t think we have enough refineries to handle all the different types of crude, do we? We haven’t built a new one in years; just upgraded the older ones, at great cost, IINM.
http://www.eia.gov/tools/faqs/faq.cfm?id=29&t=6
We refine more than we use ourselves.
It is far cheaper to expand and upgrade an existing refinery than build a new one from scratch.
American refiners are set to add at least 400,000 barrels of oil-refining capacity a day to existing plants between now and 2018, according to information compiled by The Wall Street Journal and the consulting firm IHS. That is the fuel-making equivalent of constructing a new, large-scale refinery.
On top of that, plans are in the works for several plants capable of processing the ultralight oil extracted from the Eagle Ford shale formation in South Texas. Those facilities, which are relatively inexpensive to build, aren’t technically considered refineries because they can’t handle a complex array of crude types or produce a wide mix of fuels.
These plants, called “splitters” or “toppers,” take the very light oil one step closer to becoming gasoline and diesel. Then the half-processed fuel can be shipped to Latin America, Europe and Asia, where refiners there finish the job.
Some energy companies that traditionally weren’t involved in refining are jumping in. Kinder Morgan Energy Partners KMP +0.28% LP, a pipeline company, is building an ultra-light-oil plant near the Houston Ship Channel that will create up to 100,000 barrels a day of fuels for export. Magellan Midstream Partners said it is considering a project that is similar in size and scope and would be located in Corpus Christi, Texas, about 200 miles to the southwest.
more at:
Shale-Oil Boom Spurs Refining Binge
http://online.wsj.com/news/articles/SB10001424052702303874504579376962979450296
Higher U.S. Crude Production Has Valero, Marathon Increasing Capacity
March 2, 2014