Mel at Engine of the Future commends our public officials for their concern about refinery capacity, but he thinks their proposals need a little (ahem) refining.
Regarding Congressman John Sullivan's Cushing megarefinery proposal, Mel likes the idea of a Cushing refinery, but it shouldn't be the only one:
If we were dependant on one “megarefinery” anywhere as our lone reserve capacity, I can imagine one “megatornado”, causing “megadamage”, leading to another “megacrisis” in energy. Megabad idea in my opinion.With respect to our energy infrastructure, if Katrina is to teach us anything, it is this: We must diversify the locations and their capabilities.
I do applaud Congressman Sullivan though, at least he’s thinking along the right path.
Regarding Corporation Commissioner Denise Bode's proposal to provide tax incentives for increasing refinery capacity, Mel says tax breaks won't budge oil companies who are quite happy with reduced capacity.
By the way, of Tulsa's two refineries, only the Sinclair Refinery produces gasoline. The Sun Refinery produces lubricants, waxes, and aromatic oils for industrial uses.