Reply #18: New refineries were approved by Gulf state govts but were never built [View All]

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Experts on CNBC after Hurricane Katrina stated unequivocably that several new refineries on drawing boards had gotten the green light from either or both Louisiana or Mississipi several years ago, but the companies did not build because there was no need as long as existing refineries could provide enough to maximize profits without the companies spending on new refineries. The oil industry experts said that govt regulations or lack of incentives were not to blame for the fact that no new refineries have been built.

There should be no incentives for an industry making such huge profits but being unwilling to reinvest profits in infrastructure improvements and maintenance as long as the current facilities are able to meet demand providing windfall profits.