The key to avoiding an energy crisis is the ability of the U.S. to refine enough crude to meet the demand for gasoline, diesel fuel and other petroleum products, according to Jerry Thompson, Citgo Petroleum Corp. senior vice president of development and technological excellence. "Right now, we don't have the facilities to bring this energy to the consumers," Thompson told participants in Hart Energy Publications 2001 World Fuels Conference in Washington. While the number of domestic refineries has trickled down steadily during the past few decades, the refining capacity of those remaining has been increasing slightly, he observed. Additionally, most refiners have been running their plants near their full capacity. Nevertheless, there still is a shortfall that is being met by foreign sources, he adds. Any supply disruptions caused by refinery outages could have a substantial impact on the country's ability to meet product demand, he warns. Future demand is showing no signs of slowing down. Thompson sees a serious need for facilities to bring products to markets. But he also considers it by no means certain that refining can attract new investment when margins are lethargic and improvement short-lived. "Can we attract new investments to build refineries?" If not, there is a potential for crisis.
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