Washington, Aug 15 -

Today, Congressman Patrick McHenry outlined measures needed for the United States to increase its domestic oil refining capacity.  Congressman McHenry continues to put forth a series of proposals to increase the exploration and production of American energy resources.

“Permanently bringing down gas prices requires us to increase the supply of American oil while simultaneously increasing our refining capacity,” Congressman McHenry stated.

Because of a lengthy and complicated bureaucratic permitting process, a new oil refinery has not been built in the United States since 1976.  The expansion of current refineries has been the only means by which the country’s overall refining capacity has increased.

According to the Energy Information Administration, the United States is currently utilizing 88.8% of its oil refining capacity.  In June, the Wall Street Journal noted, ‘Refineries are stretched to the limit, but multiple regulatory barriers impede new construction.’

Congressman McHenry proposed streamlining the multi-agency permitting process and appointing a federal coordinator to help manage the process.  The coordinator would work with both federal and state agencies to expedite pending permits.
(source: H.R.2279)

Tax exempt revenue bonds would be used for building new refineries that only produce and sell their oil in the United States.  Similar bonds were utilized in the aftermath of Hurricanes Katrina and Rita.
(source: H.R.3089)

Congressman McHenry has also proposed utilizing decommissioned military bases as possible locations for construction of new refineries.  New refineries could serve as engines of economic development and job creation for areas that struggle in the aftermath of base closings.
(source: H.R. 2279)

Unlike the mere expansion of existing refineries, new facilitates could be constructed with the capability to refine oil shale, of which the United States owns the world’s largest deposits.  Oil shale is similar in composition to tar sands that Canada refines for use as common automobile fuel.

“Until we can power our economy with alternative energy sources, we must start using America’s large reserves of oil.  Increasing our refining capacity will lower gas prices for Western North Carolina by bringing American oil to market faster,” Congressman McHenry said.

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