The US Hasn’t Built A Major Oil Refinery In Nearly 50 Years. Here’s Why

The U.S. hasn't constructed a major petroleum refinery since 1977 even as fuel demand and domestic oil production have surged in recent decades.

Major refinery operators have largely opted to upgrade facilities rather than construct new greenfield plants because of the projected fuel demand decline in coming years and lengthy regulatory process required for such projects, according to industry experts.

In the U.S., refineries processing a total of more than 800,000 barrels a day have closed since 2019 leaving the nation with a total operating refinery capacity of 17.7 million barrels a day, its lowest level since 2013.

There are five idle U.S. refineries - the highest number since 2012 - which have a total capacity of 408,000 barrels a day, an issue the White House is reportedly considering addressing.

Refinery capacity has grown by about 3.3 million barrels per day as the number of refineries has fallen from 199 to 124 since 1985.

"We've gone from many smaller refineries to refineries operating more efficiently and more economically," Kish told TheDCNF in an interview.

A refinery being built in North Dakota, the largest greenfield refinery since the 1977 Marathon plant, began its permitting process in 2013 and isn't expected to be completed until 2023, Forbes reported in 2020.

https://dailycallernewsfoundation.org/2022/05/30/the-us-hasnt-built-a-major-oil-refinery-in-nearly-50-years-heres-why/