How does the United States meet its scarcity of refined petroleum products? What other approaches could it use?

Numerous statistics indicate positive trends in the midstream and downstream oil markets, led by the domestic petroleum refining industry [1]. Domestic capacity has expanded, and there is a robust product-import market. Increased refining efficiencies have moderated crude-oil price rises since the 1970s. Products have been reformulated to improve environmental performance.

Higher refining margins in recent years have led to planned capacity additions, domestically and internationally. Few if any new refineries are likely to be built in the United States, however. This is because (among other factors) the financial disadvantage of building from scratch versus incrementally expanding existing capacity, the issue of permits aside. In all, the price- and profit-driven market process is ably at work, promising to bring the issue of pricing petroleum products back again to the issue of the globally-set price of crude oil.

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