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The need for more refinery capacity has been the focus of President Bush's energy plan.
Other oil-producing nations have agreed to increase crude production but have little extra refinery capacity.
Some analysts had believed that domestic oil demand had permanently peaked, leaving excess refinery capacity.
[C5.] Bill to Increase Refinery Capacity Draws Criticism Critics are charging that a bill to give the oil industry incentives to increase refinery capacity would gut air-quality protections that currently govern the refining and power industries.
The market was already unsettled by evidence of a lack of refinery capacity to meet the world's growing energy needs.
The institute provided statistics showing refinery capacity has increased since 1996 as refineries became more efficient and some expanded.
The Texaco memorandum concluded that "significant events" were required to deal with the excess refinery capacity problem.
Some traders and oil industry analysts have warned that shortages could result from a lack of refinery capacity.
We find that only half of the state diesel tax is passed on to consumers when U.S. refinery capacity utilization is above 95percentt.
These data originate from the U.S. Energy Information Administration, Refinery Capacity Report, (EIA-820) Table 3, Capacity of Operable Petroleum Refineries by State.
Price increases were driven by many factors, including the level of demand and of inventory, and the amount of refinery capacity available, the report said.
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CEO of Professional Science Editing for Scientists @ prosciediting.com