Dingell seeks DOE information on refining capacity options

Sept. 20, 2005
The House Energy and Commerce Committee's chief minority member has requested help from the US Department of Energy in addressing the domestic oil refining situation.

Nick Snow
Washington Correspondent

WASHINGTON, DC, Sept. 20 -- The House Energy and Commerce Committee's chief minority member has requested help from the US Department of Energy in addressing the domestic oil refining situation.

Rep. John D. Dingell (D-Mich.) noted that at the committee's Sept. 14 hearing on recovering from the effects of Hurricane Katrina several witnesses discussed the importance of expanding US refining capacity.

"According to statistics gathered by the Energy Information Administration, some 30 refineries have closed in the United States since 1995, representing over 900,000 b/d of refining capacity," Dingell said in a Sept. 15 letter to Energy Sec. Samuel W. Bodman.

He then asked Bodman if refiners have tried to bring any of these facilities back online and if DOE had analyzed whether any of these plants are ready to be restarted. On specific closed refineries, Dingell said he is interested in:

-- The last date on which the refinery yielded petroleum products and its throughput capacity at that time.

-- Whether substantial equipment and infrastructure remain that would allow production of gasoline and other products to resume within a reasonable time.

-- Whether appropriate transportation facilities, including necessary pipeline hookups, remain in place.

"If the owners have provided to you estimates of the time and capital expenditures required to reopen the facility, we would appreciate them as well," Dingell wrote the energy secretary.

He also noted that US President George W. Bush proposed a policy of siting new refineries on closed military bases on Apr. 27. "What efforts has the department undertaken to promote this policy? How many closed military bases has the department determined may be suitable locations to site a new refinery? How many inquiries have been made by the refining industry to the department (or any other federal agency) expressing an interest in siting a new refinery on a closed military base?" Dingell asked.

He added that if DOE or any other federal agency does not have information on the suitability of using closed military bases as sites for new refineries, he would appreciate DOE's conducting an analysis and transmitting it to the committee. Noting that Rep. Joe Barton (R-Tex.) wants to move expeditiously, Dingell asked Bodman for a response by Sept. 30.

"We expect further committee action on this matter and note that we have not yet heard from several important stakeholders, including state and local officials," the Michigan Democrat said. "As the committee continues to investigate what, if any, policy changes need to be made in order to avoid future disruptions in retail gasoline supply, I would appreciate the department's assistance in gathering information that may be relevant to our deliberations."

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