[Colt 45]

Are our oil refineries operating at full cap.?If not,why,if so, why arent oil co.s building more?Would this not have an effect on supply and demand?Or have speculators taken it beyond that?

[pcfrisch]

Yes, the refineries are at or near capacity. They shut many of them down in the 70's to jack up prices.
Just a few days ago, Marathon got the ok here in Michigan to expand their refinery. Short of a miracle considering environmental groups.

http://www.industryweek.com/ReadArti...rticleID=16639

June 20, 2008 -- Marathon Oil Corp. today announced that construction of the estimated $1.9 billion heavy oil upgrading project at its Detroit refinery is under way following issuance of an air quality permit by the Michigan Department of Environmental Quality (MDEQ).
With expected completion in late 2010, the project will increase the refinery's total capacity from 102,000 barrels per day (bpd) to 115,000 bpd,

[Dave]

I don't think that there has been a new refinerery built in the US for over 30 years and very few expansions of the existing ones. Most are operating at about 95% right now Why not you may ask not any new ones? Same government rules and regs that kind of prevent off-shore drilling. The EPA and states fear of a hugh, damaging oil spill. One of the Western States wants all the electric power they can get but doesn't want it produced in state, that's the "Not In My Backyard" simdrome. Almost 50% of the hugh cost run-up lately is due to the speculators, not the cost of production. Our company has been working for the last two years on some products going up to Alberta, to the "Tar Sands" region. Been said that there is enough oil in the sand to feed the US for 100 years (if, big if, we learn to cut back our usage).
Big oil field up in N. Dakota just starting to be develeped.
Dave - working in the Oil/Gas Industry as a Mech Designer