Why are gas prices so high? It was decades in the making.
He’s begged, cajoled, and criticized Big Oil to churn out more gasoline, and even turned to shame — “Exxon madeHouston gas prices fall for a second week and may drop again
The oil shocks set the United States on a path toward reducing its dependence on foreign oil. The federal government began rolling out fuel efficiency standards and automakers responded to consumer demand for cars with better gas mileage. In 2015, for example, the North Dakota company Meridian Energy Group launched plans to build a refinery in North Dakota’s oil-producing Bakken region. The refinery, estimated to cost about $900 million, would have the capacity to process about 50,000 barrels of oil a day — a modest amount compared to major refineries, such as Exxon Mobil’s Beaumont complex, which can refine up to 366,000 barrels of oil a day.
All told, refining capacity has shrunk by 1 million barrels a day in the United States and 3 million barrels per day globally since January 2020. Operating U.S. refineries are now running at around 94 percent of capacity, according to the Energy Department.
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