Why are there no new Oil Refineries built lately when price of Oil today is higher than it was 50 years ago?
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I’m actually qualified to answer this because I’ve worked at the most recently built US refinery and currently work for others with the company.
1. Refineries are fucking expensive. Even minor projects which can still be in the million dollar range are still cheaper than building whole new units.
2. No one wants to have a new refinery built in their neighborhood. Understandable.
3. We really don’t need to, the US is a net exporter of refined products and our refineries don’t run at full capacity. This is why refiners such as Marathon are able to afford shutting down a refinery to convert it to a biodiesel or other renewables plant. Also, most refineries have not used all of their owned land and have the option for unit expansion in the future if necessary.
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