Shuttered refineries unlikely to start back up
- Limited refinery capacity in specific U.S. geographic areas, known as PADDs, has spared worry in the United States over high gasoline prices and energy security
- In June, Chevron CEO Mike Wirth posited that there would never be another new refinery built in the US
- U.S. energy executives told Jennifer Granholm that shuttered crude oil refineries won't restart, Valero's Chief Executive Joe Gorder said on Tuesday. Limited U.S. refinery capacity-and perhaps more critically, refinery capacity in specific U.S. geographic areas, known as PADDs-has spared worry in the United States over high gasoline prices and energy security. US refinery run rates were north of 90% for much of the summer, according to the EIA's Weekly Petroleum Status Report. Shuttered refineries unlikely to start back up are the latest nail in the U.S. refinery coffin. In June, Chevron CEO Mike Wirth posited that there would never be another new refinery built in the United States. "Building a refinery is a multi-billion dollar investment. It may take a decade. We haven't had a refinery built in the United States since the 1970s. My personal view is that there will never be another refinery built in the United States," Wirth said at the time. Refinery utilization in the United States for the week ending October 14 was 89.5% of their operable capacity, the most recent EIA data shows.
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