The last time a small oil refinery was built in the United States was 1993 in Valdez, Alaska.  The last time a large oil refinery was built in the United States was 1976.  These figures come from the National Petrochemical & Refiners Association (NPRA).  The NPRA also reports that 95 percent of the gasoline purchased by U.S. consumers is refined inside the United States.  Do you think our demand for gasoline might have increased since 1976 or 1993?  Don’t assume that Washington is paying attention.

On Monday CNS News reported that U.S. Export-Import Bank, an independent agency of the federal government, is now to loan $2.84-billion for a massive project to expand and upgrade an oil refinery–in Cartagena, Colombia.  What about here at home?  I suspect that the problem is that the environmental regulations concerning refineries have gotten so out of hand in recent years; it probably does not pay to attempt to build a refinery in the United States.

The article reports:

“In its 2009 annual report, Ecopetrol says “we became 100% owners of Reficar, the company in charge of carrying out the Cartagena Refinery modernization plan.”

“In its ordinary procedure for financing projects of this magnitude, the board of the Export-Import Bank votes its preliminary approval, notifies Congress of that preliminary approval, then waits five weeks before voting final approval of the deal. This allows members of Congress to comment on the planned financing project.

“”The Reficar transaction is subject to congressional notification, with a final vote anticipated approximately 35 days following the expiration of the notification period,” says the bank’s press release on the loan.

“When asked if Congress can veto the loan, Ex-Im Spokesman Cogan said, “No.””

Whatever happened to the idea of developing America’s refining industry?  Are we destined to keep spending money overseas to become more dependent on countries which in the long run may not actually be our friends?  Could we please have some common sense in Washington?