LTE: The Closure of US Oil Refineries

I recently wrote a letter on exported fuels by U.S. oil companies who reap higher prices paid overseas.

Another reason for our high gasoline prices is the closure of U.S. oil refineries and the movement of our oil overseas to foreign refineries, “Sunoco is closing two refineries in July 2012 in Philadelphia and Marcus Hook, PA. Conoco Phillips announced the closing of two plants in Trainer, PA and Bayway, NJ, and is closing its facility in Alaska. Hess is closing the third largest U.S.oil refinery, laying off 2,000 workers and impacting 950 contractors.”

The oil companies, with profits of tens of billions of dollars each year, are closing U.S. refineries due to environmental and other government regulations and union demands. Refineries are being built in Columbia, Mexico and Brazildue to low construction and operating costs. Plus our government unconsciously promotes this construction by providing foreign aid to the countries.

Hopefully, it isn’t too late for our government and the unions to wake up and evaluate the impact of their policies and decisions on the oil refining industry. Otherwise we will continue to see rising fuel prices that could reach historic highs, including gasoline at or above $5.00 per gallon.