Reply #50: U.S. refineries straining [View All]

[54anickel]

Nation becomes more dependent on foreign gasoline

http://www.freep.com/money/business/refineries7e_20050607.htm

WASHINGTON -- America's unquenched thirst for gasoline is stretching the nation's refineries to their limits.

Even so, no refineries are likely to be built soon, and that helps ensure that gas prices will stay high as America becomes increasingly dependent on foreign-made gasoline.

High investment costs and low profits have discouraged the building of any U.S. refineries since 1976. Absent new refineries, rising demand for gas will outpace American refiners' ability to make it.

U.S. and global demand for gasoline is at an all-time high. American refineries are running at more than 90% capacity and at up to 96% in peak times. That's close to full throttle.

The soaring demand is highly profitable for refiners, who are squeezing out every gallon of gas they can. But their strain to meet the demand is one reason you're paying so much at the pump.

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