That's the lead story on front page of the 6/26 Kansas City Star.
You can read the whole article by going to The KC Star website but it's one of those sites where you'll have to register to read it.
The gist of it is that the number of refineries in the US has declined from 324 in 1981 to 148 today. Capacity has not decreased by a lesser amount-- in 1981 the 324 refineries could refine roughly 18.5 million barrels per day; today's output is something like 17 million barrels, around a 9% decrease in capacity. But-demand is up 38% in the same period, resulting in a 73% increase in the inflation-adjusted price of unleaded.
The saddest part of the story is that none of this is coincidence. They discovered instances in which oil companies refused to sell old refineries to cash-in-hand buyers, preferring instead to shutter the refinery so its capacity disappeared, thus 'tightening the market'. Other attempts by independents to build refineries have been thwarted in their efforts, but not by who you'd suspect (the EPA).
A disheartening, but interesting article. I can't blame the oil companies for wanting to be more efficient, but now we are running on the ragged edge of capacity with nothing in reserve.
You can read the whole article by going to The KC Star website but it's one of those sites where you'll have to register to read it.
The gist of it is that the number of refineries in the US has declined from 324 in 1981 to 148 today. Capacity has not decreased by a lesser amount-- in 1981 the 324 refineries could refine roughly 18.5 million barrels per day; today's output is something like 17 million barrels, around a 9% decrease in capacity. But-demand is up 38% in the same period, resulting in a 73% increase in the inflation-adjusted price of unleaded.
The saddest part of the story is that none of this is coincidence. They discovered instances in which oil companies refused to sell old refineries to cash-in-hand buyers, preferring instead to shutter the refinery so its capacity disappeared, thus 'tightening the market'. Other attempts by independents to build refineries have been thwarted in their efforts, but not by who you'd suspect (the EPA).
A disheartening, but interesting article. I can't blame the oil companies for wanting to be more efficient, but now we are running on the ragged edge of capacity with nothing in reserve.