Oil refineries DA
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1nc Oil Refineries DA
Refineries will be expanded now.The White House 08
– (June, “Policy Memorandum: American Made Energy,” The Oil Drum,http://www.whitehouse.gov/news/releases/2008/06/20080618-9.html)There are 149 refineries in the U.S. today, refining approximately 15 million barrels of oil per day. While no new refinerieshave been built in the last 30-plus years, existing refineries have undergone extensive modifications to adapt to changes indemand, changes in crude oil inputs, changes in fuel outputs (e.g. gasoline vs. diesel), and costs. Over the last 10 years, totalcapacity increased 1.85 million barrels per day, the equivalent of adding 1 medium-sized refinery per year. These expansionsall took place at existing facilities. A refinery expansion or modification requires multiple permits, and can be undertaken for several reasons, including: To increase production, for example by increasing crude oil capacity or improving the yield of certain products by adding a downstream unit process To produce different types of fuel (i.e. to change the product mix tomore diesel relative to gasoline) To reduce costs, by improving reliability or switching to lower quality crude oils to complywith regulations requiring cleaner fuels and changing fuel specifications. Going forward, it is predicted that refineries willcontinue to need to undergo modification and expansion to meet evolving demand and evolving types of inputs. The EnergyInformation Administration predicts that overall future demand is expected to grow less than 0.5% per year and total capacityexpansion is anticipated to flatten out starting in 2010. However, a shift in demand is predicted. Demand for petroleum-basedgasoline is expected to decline by about 7% over the next 15 years while demand for diesel is expected to increase about 12%over the same time. There will also be a continued need for refinery modification to accommodate a changing mix inavailable crude oil. For example, refineries are and will be making investments to process the increasing quantities of heavyCanadian crude oil from tar sands. Successful completion of a refinery modification requires successful completion of the permitting processes, for example those required by the Clean Air Act and the Clean Water Act.
**Insert specific link**Our link is immediate: the plan immediately destroys investor confidence in refineriesDrevna, 08
- President National Petrochemical and Refiners Association (Charles, CAPITOL HILL HEARINGTESTIMONY, 5/6, CQ Congressional Testimony, lexis)Refinery Capacity Expansion Projects. It should be clearly understood that requirements to substantially increase the volumeof ethanol and other renewables will essentially supplant a significant portion of the need/desire for additional domesticrefining capacity.
Refiners must make investments today on what they believe to be the longer- term
(10-15 years or more) outlook. The domestic refining industry is likely to look upon rapidly rising ethanol and other bio-fuels requirementsin the coming years
as adding significant more risk to investments
in capacity expansions. As recently as 2006, theDepartment of Energy (DOE) forecast that domestic refiners were likely to add 1.5 million barrels per day of capacity between 2006-2010. Based upon perceptions of renewable market developments - developments being stoked byadministration and congressional actions - current estimates suggest that expansion in the domestic refining is likely to beconstrained well below 1 million barrels per day. These decisions are being re-visited in boardrooms across the refiningsector as the anticipated surge in ethanol requirements/mandates in the coming years will pressure domestic, and undoubtedlysome foreign refiners currently supply the U.S. market to postpone or cancel new investments in petroleum refiningcapability.
Refineries are vital to preventing oil shocksLeng, 6
– Sunita Sue, Staff writer, The Edge Singapore, “As I Call It: Taxing oil profits is no windfall solution” 5/8, LexisAfter the oil shock of the late 1970s, then US president Jimmy Carter pushed through the Crude Oil Windfall Profits Tax Act
in 1980. The tax was imposed on the difference between the market price of oil and a government-determined base price. According to a study by the Congressional Research Service, the windfall profits taxwas expected to raise more than US$320 billion between 1980 and 1989. However, the government only managed to collect US$80 billion. Worse, the final amount was actually only about half of this becausethe tax was deductible against corporate income. The study also found that the tax had the effect of decreasing domestic production by 3% to 6%, increasing US dependence on foreign oil sources.
Refining bottleneck If left to the market, soaring energy prices will force everyone to moderate their gas-guzzling ways atsome point, whether it's buying a smaller car or using less air-conditioning.
But that will take time and that's the demandside of the equation. What really needs to come under scrutiny is the supply side -- specifically, the refineries
prices are high because there is too little refining capacity. The US hasn't built a new refinery in years. In fact, sincederegulation in 1982, oil consumption has risen by a third while oil companies have reduced refining capacity by a tenth, saysthe Foundation for Taxpayer and Consumer Rights. Refining is the bottleneck. It needs to be addressed. And while we'rethere, get rid of those tax breaks and subsidies that the big oil boys enjoy. The extra money could go some way towardsmaking those hybrid cars cheaper.
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