Trump's Refinery Plan Won't Tame Soaring Gas Prices
The US President Donald Trump is pushing to revive domestic oil refining capacity in an effort to lower gas prices. However, industry experts argue that this move won't have a significant impact on fuel prices anytime soon.
America's last new oil refinery was built in 1977, and since then, the number of refineries has been declining, with about twice as many operating in 1982 compared to today. Despite this, US refineries have managed to meet domestic demand due to improved technology and efficiency.
The current spike in gas prices is largely attributed to global refining capacity constraints rather than a decline in US refining capacity. Refineries in the Middle East and Russia have been damaged by military attacks, leading to a significant loss of 2 million barrels per day of supply. This shortage has driven up fuel prices.
US refiners are currently running at nearly 100% capacity, with record profits due to high demand and limited supply. However, even if new refineries were built, it would take years for them to come online and alleviate current price pressures.