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Does the U.S. Need More Refineries?

Without a new major facility built since 1977, U.S. refining could be the next bottleneck for American energy. We have seen the lack of pipelines begin to be addressed, but what about the dearth of refineries?

By Tyler Crowe and Aimee Duffy – Mar 14, 2013 at 5:47PM EST

"I'm givin' her all that she's got captain!"

That may be a quote from a Star Trek character, but it also could be used to describe America's refinery business. With almost all Gulf Coast refiners at maximum capacity, some companies like Valero (VLO 1.40%) are looking to ship crude from there to other facilities. Major companies like ExxonMobil (XOM +0.34%) and Phillips 66 (PSX 0.29%) have seen downstream margins expanding. Will they leave that cash in the segment and use it for expansion?

Today, Fool.com contributor Tyler Crowe checks in with the refining business in the U.S. and explains how a lack of investment in the industry could spell trouble down the road.  

Read Next

About the Author

Tyler Crowe
Tyler Crowe is a contributing Stock Market Analyst for The Motley Fool. He has worn several hats over the past 14 years with the Fool from analyzing stocks, writing about them, talking about them, coaching others about stock writing, and...you get the idea. Tyler's true passion is turing over stones to find the oddball investments with incredible wealth building potential. If he isn't nose-deep in a proxy statement, Tyler is probably skiing somewhere. Tyler holds an M.B.A. from Collège des Ingénieurs (Paris), a, M.S. in Environmental Engineering, a B.S. in Civil Engineering, and a B.S. in Foreign Affairs from the University of New Hampshire.
TMFTylerMCrowe

Fool contributor Aimee Duffy owns shares of HollyFrontier. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them both on Fool.com under the handles TMFAimeeD and TMFDirtyBird.

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

ExxonMobil Stock Quote
ExxonMobil
NYSE: XOM
$151.28
(+0.34%)+$0.52
Valero Energy Stock Quote
Valero Energy
NYSE: VLO
$224.83
(-1.40%)-$3.20
Phillips 66 Stock Quote
Phillips 66
NYSE: PSX
$166.07
(-0.23%)-$0.38
Marathon Petroleum Stock Quote
Marathon Petroleum
NYSE: MPC
$221.34
(+1.83%)+$3.98

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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