But we still need to diversify the geography of our refining capacity. We came very close last year to having both the New Orleans and Houston refineries out due to hurricanes. Adding more gulf coast refineries doesn't do anything to diverisify against risk of natural disasters disrupting product supply.
A group has been trying to bring a refinery to fruition in Yuma for four or five years now. Latest setback was Mexico saying they could no longer guarantee oil for the refinery so it will have to be brought by pipeline and ship from Canada (and much greater cost).
Don't buy into all the media hype. We do need to add refining capabilities and in more than one area. But we have refining in most areas of the US.
Capacity of Operable Petroleum Refineries by State as of January 1, 2006