Gas Junkie - Gasoline Prices Questions

Question: why are no new oil refineries built?

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Answer #1:

Peak oil reached many years ago. Supply of crud oil has been decreased and demand increased. This caused the increase price of oil. The oil spill didn't really affect the price of current oil. Take a look at the crud oil price not the price of gas at gas station. There has been huge uptrend of crud oil price since the early 2000. If oil companies knew that they can make more money by building more refineries, they'd have done it.

H.

Answer #2:

There is more money to be made other ways then in refining oil. So even when the government relaxed rules, oil companies weren't interested in building new refineries.

There has been a lot of consolidation, and closing of refineries, and also adding more capacity to existing refineries, and improvements in efficiency.

But there is no profit to be made by increasing the supply of gasoline. In fact, the United States exports gasoline as well as imports gasoline.





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