Mark Clayton has a good article in the September 21, 2005 issue of The Christian Science Monitor on the how the US needs to expand and locate more gasoline/heating oil refineries throughout the nation to ensure that storms like Katrina or Rita doesn't knock such production facilities off-line like we have seen in the past weeks. No matter how you look at it, we've got to make an effort to remove such a bottleneck in the supply which President Bush has been pointing out since assuming office. Just see for yourself what's at stake:
The current refinery squeeze has been building for years. For the past two decades, deregulation and low profits have combined to push the industry into consolidation. Partly because of environmental regulations, it was cheaper to expand existing refineries than to build new ones. In 1981, the US had 324 refineries with a total capacity of 18.6 million barrels per day, the Department of Energy reports. Today, there are just 132 oil refineries with a capacity of 16.8 million b.p.d., according to Oil and Gas Journal, a trade publication.Now I understand the folks' concern about the refineries posing a threat to the environment(Who doesn't want a clean environment) but I also see the whole national security problems. Our nation can't afford to be weakened or put into a literal standstill because of a massive hurricane. We can do a heck of a lot better and by G-d we should. After all, we are America.
This bottleneck is expected to keep pressure on gas prices - and politicians. Both parties are weighing measures to loosen environmental and permitting constraints for refineries. Rep. John Shadegg (R) of Arizona is set to offer a bill to streamline federal regulations governing refineries, Congressional Daily reports.
Echoing that call, Representative Sullivan announced he will introduce legislation to help pave the way for a big new refinery near Cushing, Okla. His proposal, which had been stripped from the energy bill passed by Congress this summer, would speed up permitting by lessening "arcane and outdated environmental standards," he said in his statement.
But the furthest along is Arizona Clean Fuels Yuma, which aims to locate a high-tech oil refinery in the Arizona desert. The hurdles are high. The company is still lining up investors to pay the $2.5 billion price tag. It has to hire biologists to ensure the new plant will not hurt an endangered lizard. A local clean-air group is questioning the project. But if the plan is realized, it would be the first US refinery built since 1976.
"Maybe Katrina has taught us not to concentrate all refineries in one area, let alone a hurricane-prone region," says Glenn McGinnis, the company's CEO. "We need to diversify."
Also check out this diagram to see where our 132 refineries are located.
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