The sorry fact that no new refinery has been built in America since 1983 has been cited so many times that we would have thought someone in Washington would have done something about it by now. But no — it just keeps getting worse.

In 1982, the U.S. economy was served by 301 refineries. By 2007, the number had dwindled to 149. Productivity has kept output steady over the years at 17 million barrels a day. But the U.S. economy has grown by 125%.

"Valero believes there will never be another refinery built in the U.S.," spokesman Bill Day told IBD. He cited costs, environmental regulations, neighborhood activism and lawsuits.

"For a new refinery, it would take five years for a permit and five years for construction, and it's very expensive. A company would have to know it would pay off."

Congress has been of no help whatsoever. Mandates requiring certain ethanol percentages in gasoline composition are chopping down refiners' market share at the pump.

Refiners are undercut by the subsidies ethanol producers get that refiners don't. Ethanol producers are also protected by high tariffs on overseas ethanol, while imported gasoline comes in duty-free. This brings in a lot of competition for refiners.

Given these conditions, is it any wonder companies such as Valero are looking for friendlier climes?

The laws by which Congress hamstrings energy producers have had the lethal effect of slowing down the economy while driving up prices. It's high time for measures that do just the opposite.  Source

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