Chevron already had slashed new investments in California refining, citing “adversarial” government policies…Newsom ran for reelection in 2022 promising to wage war on Big Oil…
DB2
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He wasn’t the only one.
government policies. The last significant refinery built in the United States was in 1976. (A small refinery came online in 2020 in North Dakota). Over the last two years, due to reduced demand from the pandemic and Presidnt Biden’s stated policy to reduce the demand for petroleum products, U.S. refineries have been shut down or repurposed to become biofuel refineries. In a business where investments have a payout period of a decade or more, it is unlikely for investment to be spent on policies where the demand is to be reduced.
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Nobody is building new refineries in the US but they are expanding capacity.
Million barrels
per day
1999 16.3
2009 17.7
2019 18.8
2020 20.0
2021 18.1
2022 17.9
2023 18.1
2024 18.4
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=8_NA_8D0_NUS_4&f=A
DB2
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This is in line with overall energy production, which has consistently risen year over year. The US has produced more energy now than ever.
Pete
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Yes, that’s because that is the only way to do it. You can expand capacity on existing dirty refineries, but there is no way to economically build a new cleaner refinery. It’s an absurd side effect of how government regulations work (or don’'t work as the case may be).
Why do you assume that the new equipment/methods/catalysts at an expanded facility aren’t cleaner? I find it hard to believe that the industry is still using 1970’s technology and equipment.
DB2
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Re: New cleaner refinery.
A refinery is heavy, dirty industry. Getting permits must be difficult. At least with existing refinery plant pays taxes, people work there. You have voices to speak for the expansion.
Getting permits is difficult.
Getting permits in a timeframe that it has a chance to be profitable is impossible. That’s why there have been no new at-scale refineries built in the USA since the early 1970s.
It’s not my assumption, I know little to nothing about refineries. It is the generally stated opinion of the experts in the field. I’ve posted about it before with links.
It is indeed hard to believe. But there are new rules coming soon that may shut down some of it. Of course, our government being dysfunctional will probably repeatedly delay those new rules to prevent shortages of fuels and other fossil fuel products.
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I’m not really sure why you have such a grudge with California. You must have at least half a dozen posts about leaving California or some random InandOut closing by the airport; strange obsession.
California became the leading oil-producing state in the US, oh wait… that was 1930. That was then this is not then. Sardine canneries also pulled outta California if you’ve been keeping up.
It just seems like you have a fixation with the demise of California.
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