• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 6 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 days Does Toyota Know Something That We Don’t?
  • 2 days America should go after China but it should be done in a wise way.
  • 8 days World could get rid of Putin and Russia but nobody is bold enough
  • 10 days China is using Chinese Names of Cities on their Border with Russia.
  • 11 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 11 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 11 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 10 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 7 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 11 days Putin and Xi Bet on the Global South
  • 11 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
Canada Oil Faces Fresh Pipeline Shortage

Canada Oil Faces Fresh Pipeline Shortage

Canadian oil production could hit…

Chevron CEO Says No New Refineries In U.S—Ever

Chevron CEO Mike Wirth’s view of U.S. refineries is that there will never be another new refinery building in the United States.

High prices at the pump have triggered a host of discussions around where the market constraints are, but current refinery utilization in the United States—which is at more than 90%--combined with low product inventories and sky-high refining margins, indicates that the bottleneck to getting more gasoline to market is the refining segment—not pumping crude.

But according to Wirth, there may be no relief in sight. In an interview with Bloomberg Markets, Wirth describes his rationale for that belief:

“Building a refinery is a multi-billion dollar investment. It may take a decade. We haven’t had a refinery built in the United States since the 1970s. My personal view is that there will never be another refinery built in the United States.”

According to Wirth, oil and gas companies would have to weigh the benefits of committing capital ten years out that will need decades to offer a return to shareholders “in a policy environment where governments around the world are saying ‘we don’t want these products to be used in the future’”.

In Wirth’s view, they are receiving mixed signals in these policy discussions.

“We need to sit down and have an honest conversation—a pragmatic and balanced conversation—about the relationship between energy and economic prosperity, national security, and environmental protection. We need to recognize that all of those matter.”

Wirth reiterated the industry view that oil and gas producers take a long view of the market fundamentals of supply and demand when settling on capital expenditures. And according to Wirth, it takes years for decisions made today to result in oil.

ADVERTISEMENT

The unique circumstances of the past two pandemic years have only sought to exacerbate the lag between demand and supply as industry workers fled the industry and wells and refineries were taken offline—some never to return.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Steve Walser on June 05 2022 said:
    Add in that the majors who already own refineries will just see their margins improve as the public suffers from misguided policy. The eco-terrorists will gladly see the whole world starve before they give up their obsessions.
    The only answer is an angry public repudiating the false global warming conspiracy at the ballor box.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News