Refinery Industry - Clean Fuels' Price Effect "Minimal"

[hatrack]

"As gasoline prices soared in recent months to $2 a gallon and beyond, it was not long before the question was asked: Are environmental regulations to blame? Is that why no new refineries have been built?

Industry executives argue that the cost of making cleaner fuel and reducing refinery emissions has diverted billions of dollars of capital that might have gone to expand refinery capacity or build new plants. But they also concede there are many other reasons that not a single new U.S. refinery has been built in the last 28 years.

And industry leaders agree with health advocates and environmentalists that there is no clear evidence that new clean fuel requirements and other environmental regulations had anything beyond a minimal — if that — role in the rapid run-up of gasoline prices this year.

EDIT

As for the recent run-up in gas prices, Holmstead said there is no evidence that requirements for cleaner gasoline or gasoline where MTBE — an additive that contaminates groundwater — had to be replaced had increased in price more than conventional fuel. "The price increase was essentially the same," Holmstead said."

EDIT

http://www.enn.com/news/2004-07-28/s_26251.asp

[NNadir]

1. Here are the reasons that no refinery has been built in the US since 1976.

1) Oil is not economical.

2) Public perception is that oil is too dangerous to use.

3) There is no way to dispose of oil waste, in particular carbon dioxide and carbon monoxide, but also various other side products.

4) There are no insurance plans that cover people who may be injured by refineries.

5) Oil products can be diverted for military use (napalm proliferation).

6) Oil is unnecessary since solar power and biomass can replace it quickly and efficiently at zero cost to the environment and to consumers since solar energy and solar equipment are 100% risk free. Solar energy is free while oil costs money. (The reason this has not already occurred is wholly attributable to the existence of people who are less moral than I am.)

7) Nobody wants an oil refinery near them (NIMBY).

8) The capital costs of building refineries is too high.

9) Refineries can fail and spew toxic materials into the environment.

10) It is possible to imagine that a refinery failure will kill someone somewhere someday in the future.

Did I leave any of reasons out?

(sarcasm off)

Actually, on a risk/benefit comparison basis, I'd suspect that really don't need more refineries on the planet. We probably should be undertaking programs to convert their equipment (if not to shut them) for the purposes of processing materials other than petroleum based (or synthetic petroleum base) fuels.

[Donkeyboy75]

2. You did forget one.

You can't outsource refineries to India.