[Doe Eyes]

but refineries are becoming scarce.

I don't understand this fixation with building new refineries.

It makes more sense to expand capacity at our existing facilities.

They are located at ports to receive crude oil and are connected to our existing pipeline network.

[jonascord]

Go down to Houston. Refineries in Texas City, Pasadena, Channelview, League City, La Marque, all simply don't have room to grow. They are boxed in between neighborhoods and Galveston Bay.

You need LOTS of open space, no close cities, rail transportation AND pipeline access for feedstock, to build a modern refinery. There are NO places anymore, with NIMBY, Enviromental Impact Statements, and hobby farms in every direction.

[ghost of quidam]

Every refinery in the country runs 95-100% capacity right now. No new refineries have been built in years, and many, many small to mid-size ones have been squeezed out, both phenomena caused primarily by environmental regulations.

That's why there's a price spike/hiccup everytime there is a refinery problem/accident/shutdown anywhere in the U.S.