How we became a net petroleum exporter again

Hot Air ^ | 12/19/11 | Jazz Shaw

[Razzz42]

Until recently Mexico wouldn’t allow foreign partners into their government oil monopoly hence oil recovery, from a lack of technology, suffered. That is slowly changing as Mexico pumped the easy oil out of the ground but needs help getting the 80% left behind out of existing wells. That will take time to get up to speed.

[thackney]

Because we do not increase refining capacity.

We have plenty of refining capacity and this shows it. More product comes out of our refineries than we use. That is how we became a net refined products exporter.

That was accomplished by a couple of items, including lots of refinery expansions and upgrades that inspite of building no new refineries and closing some of the less productive ones, we still expanded our total capabilities.

[zeugma]

One thing that makes US gas prices higher than the need to be is CAFE standards which require retooling or readjusting refineries for a myriad of output products that are used all over. (Unleaded is not the same everywhere you buy it in the US).

Glad I decided to read down the thread before replying

This is a biggie, as it creates artificial scarcity where there should be none, and drives up the cost of product because of the need to have so many different blends of gasoline in various parts of the country. Without the EPA (and congress) demanding this insanity, we'd probably havbe 5 or 6 blends that would be in use over most of the country. Prices would be lower and more uniform across the country.