The Real Obstacle to Cheaper Gas
Adrian Moore of the Reason Foundation spells out why the price of gas is so high. Written a week ago this article has already proven prophetic, especially here in Hawaii.
A new oil refinery has not been built in the United States since 1976. During that time, our gasoline use has increased over 25 percent. The nation’s 149 existing refineries have been running at maximum capacity trying to meet record demand and, as a result, not only do we import oil, we actually have to import 10 percent of our daily gasoline from refineries overseas.
Notice that last point. We import 10 percent of our daily gasoline usage. This is clear evidence of an insufficient amount of refinery capacity. Moore goes on to say:
Just a few new refineries would alleviate the problem and help keep our gas prices lower and steadier.But getting an oil refinery built is next to impossible, hence the 30-year construction drought. There will always be environmental activists who fight any new proposed refinery, regardless of where it might be located and how environmentally safe it is. And our environmental rules give them the upper hand. . . .
Consider the example of Arizona Clean Fuels, which has been trying to build a small refinery outside Yuma for almost 10 years. It took five years just to get air-quality permits. Now they hope to be operational in 2010, 15 years after they started the project.
The answer is clearly to build more refineries but few people want them in their communities, or as the saying goes “Not In My Back Yard!”
To bring this into focus: How many groups would come out of the woodwork and oppose the building of even a single new refinery here on Oahu? Until the residents of Hawaii are willing to do so they have no right to complain about the price of gas and the alleged “gouging” in the part of the oil companies. Whole article here.