The Closure of the U.S. Oil Refinery Industry in the Past 2 Years
Thursday, May 3rd, 2012By Paul Galyean
In 2010, there were 149 operable U.S. refineries with a combined capacity of 17.6 million barrels (2,800,000) per day. Something odd started happening in late 2010-early 2011. The US oil refinery industry quietly announced the closure of numerous US oil refineries. Many are completely unaware the US ships oil overseas to be processed. We do so as we do not have enough refineries to process the vast amounts here, and we are barred from building anymore refineries. All refineries perform three basic steps: separation, conversion, and treatment. Pretty simple.
Several reasons include technical and economic factors as to why we ship it overseas to be processed.
1. The crude petroleum is sold to the highest bidder, NOT the nearest bidder.
2. There are different kinds of crude oil, such as sweet/light and dark/heavy. They have different applications and uses.
3. Different kinds of refining processes are needed to make different products from the crude oil. Petroleum is processed to make lots of products other than gasoline, like plastics and asphalt.
4. Politics, unions and the “environmentalists”.
How many of you are aware Sunoco, Conoco Phillips and The HESS Corp are all closing US oil refineries?
Not many, as the media refuses to give this HUGE story coverage. My guess is that if Americans understood (more…)




