Marginal improvements

Despite reduced production in the wake of hurricane Katrina, no new US refineries are in the pipeline. Instead, refiners are operating at full tilt as they come under pressure to expand capacity. By Catherine Lacoursiere

The US is under pressure to increase crude oil refining capacity. Due to historically low refining margins, the industry has been reluctant to invest in new refining plants. Even the high oil prices over the last few years and resultant healthy boost in refinery margins has not provided enough economic stimuli to lessen the uncertainty that margins will fall when new plants become operational