CVE:CC - Biden hunts for oil refining capacity in America

The President is reportedly asking oil refiners and integrated companies to "restart idled refineries." The move marks a pivot in three ways. First, the Administration is acknowledging that prices at the pump are elevated in large part because of a shortage in refining capacity. Second, the response appears to be focused on increasing supply, rather than tax redistribution schemes or trade embargoes. Third, the request appears focused on US operators. The reported request is a pragmatic first step in what could be a short-term and long-term solution to an acute problem, and one that could be both consumer and industry friendly.  Oil refining capacity in the US has been in decline for several years, despite stable demand. However, capacity fell rapidly in recent years as pandemic-induced demand destruction, and government incentives to convert large oil refineries into very small bio-diesel plants, reduced capacity by over 1mb/d. In select cases refineries were converted

For further details see:

Biden hunts for oil refining capacity in America