US Energy Independence Hinges on Domestic Refining Capacity

The US is not as energy independent as it seems, according to Sen. Kevin Cramer of North Dakota. While America produces oil at record levels, it lacks sufficient domestic refining capacity to meet market demand and withstand disruptions in global markets.

Cramer points out that the majority of remaining refineries are designed to process imported heavy sour oil rather than American premium light sweet crude. In fact, no new refinery has been built since the 1970s, and only about 30% of US refineries are optimized for light sweet American crude.

Oil-rich California imports nearly 60% of its oil from foreign sources, propping up unfriendly regimes and incentivizing dirtier production. To address this issue, Cramer suggests increasing refining capacity by retrofitting existing refineries or building new ones.

The Davis Refinery in Belfield, North Dakota is a promising project on the horizon, with the ability to refine nearly 50,000 barrels per day of light sweet American crude for customers across the Midwest. President Trump has also announced an additional refinery in Texas.