[DeadheadNM]

" Bloomberg’s Javier Blas points out that loss of Northeast refining capacity in recent years is playing a key role in the resulting shortage. “In the past 15 years, the number of refineries on the U.S. East coast has halved to just seven. The closures have reduced the region’s oil processing capacity to just 818,000 barrels per day, down from 1.64 million barrels per day in 2009. Regional demand, however, is stronger.”

That, of course, is the key. It is a simple fact that the last high-capacity greenfield refinery to be built in the U.S. was in 1978, 44 years ago. Building a new one today would be at least a decade-long project requiring billions in new investments. As Stewart points out, “It doesn’t help when elected officials keep saying the refiners days are numbered. Refining is capital-intensive and it's tough to make multi-billion-dollar investments when governments are telling everyone they want you to go out of business.” "