When you consider how many US companies can afford to build refineries, but don't, it fairly ruins the big oil doesn't want to expand refinery capacity theories.
Among the hurdles to expanding US refinery capacity are the avalanche of NIMBY lawsuits that get in the way.
Increasing US storage capacity for petroleum products has become 'against the law' as well. Roll into New Haven city hall and ask for a permit to build x million gallons of heating oil storage on Long Island sound. You'll get laughed out the door.
As a petroleum transporter, believe me when I tell you that when the degree days hit the fan, New England is basically out of heating oil due to storage constraints. Only those oil dealers with contracts lift product under those circumtances. The Winter of '99 / 2000 was an open demonstration of this looming crisis.
An insider at Velero told me the reason no one builds in Mexico is that the fear is the Mexicans would basically seize the refineries, [edit > ] via nationalizing the assets.
