Domenici Says Congress Should Expand U.S. Refining Capacity
Committee takes up bill focused on first new refineries since 1976
July 13, 2006
01:44 PM
Washington, D.C. -- Senate Energy and Natural Resources Committee Chairman Pete Domenici today said Congress should do what it can to help increase refining capacity in the United States as part of an overall strategy to meet the nation’s ever-growing energy needs.
Domenici today chaired a 10:00 a.m. full committee hearing on the Refinery Permit Process Schedule Act (HR.5254), which was passed by the House in June and forwarded to the Senate for consideration.
“I believe one of the most constructive things Congress could do to ease some of our energy woes would be to facilitate the construction of new refineries and the expansion of the capacity at existing facilities,” Domenici said.
The number of refineries operating in the United States has dwindled from 324 in 1981, to only 149 today. No new refinery has been constructed in this country since 1976. Hurricanes Katrina and Rita last summer also exposed the vulnerability posed by having about 47 percent of U.S. refining capacity and 28 percent of crude oil production concentrated in the Gulf of Mexico region.
“We have been able to meet the demand for petroleum products through increased efficiency and capacity expansions, but there is a limit to how much we can accomplish in this manner,” Domenici said. “We are now on a path that means greater dependence on imports of finished petroleum products like gasoline, diesel fuel and lubricating oils.”
The Energy Information Administration estimates that imports of refined petroleum products are projected to grow from 7.9 percent of total demand today to 10.7 percent of total U.S. demand by 2025.
“Increasing demand worldwide for finished petroleum products coupled with insufficient domestic refinery capacity means that the U.S. must compete for finished products on the world market,” Domenici said. “We must be willing to help ourselves and the intent of the House bill seeks to streamline and accelerate our ability to site and build new refineries. ”
