What can they do with all that oil if we have no new refineries?
They will go through the same refineries today that are processing imported oil.
We do not have any refinery shortage. Our refining capacity has been above our demand for some time now, we are actually now a net exporter of refined products, since we are refining more than we use.
We have not built any new refineries, but we have been expanding and upgrading the existing ones for many years. That is cheaper than a new refinery, plus you don't have to build new pipelines to carry crude oil and natural gas in as well as products out.