Letters to the Editor
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@ chiefpayne
> We have not been able to build a new refinery in this country since 1974. Why?
Good question.
I think you are crediting environmentalists with too much power. If they had that kind of clout, our air and water would be cleaner, there would be better fuel effeciency standards, etc. Even if you were right, what would prevent an oil company from setting up shop just across the border in Mexico? Put it on the Gulf Coast, close to crude production, and in a good position to reship their refined product.
I have my own theory about why refineries aren't being built. I understand it to take 20 years or so before they break even. The only people who really know how much oil there is are the oil companies, and they guard that information as a trade secret. My guess is they know raw materials are in short enough supply that they won't make a profit in the refinery business. If oil production tapers off, our current refineries will be able to keep up just fine.
If you'd like some corroborating evidence, witness how our ex-oilman president has plopped our military down on some of the largest remaining global reserves.