US refiners have 'responsibility' to boost capacity: Bodman

Washington (Platts)--27Oct2005

US oil companies have a "responsibility" to increase refining capacity in
light of their recent record profits, US Energy Secretary Samuel Bodman told
the Senate Energy Committee Thursday.

     "The speaker got it about right" earlier this week, Bodman said,
referring to a statement by US House Speaker Dennis Hastert
(Republican-Illinois) on Tuesday urging oil and gas companies to use record
profits to build new refineries or expand existing plants.

     "I do believe that," Bodman said of  Hastert's plea. He also noted that
"until we get an indication" that companies do intend to use profits to
increase refining capacity, he would continue to encourage companies do so
both "publicly and privately." 

    "I do think that there is every possibility" that companies will make
investments to boost refining capacity, he added.

      API downstream director Ed Murphy told Platts Thursday that oil
companies had in the past, and would continue to, make investments in refining
capacity. He pointed to an announcement earlier Thursday that large integrated
US independent Marathon Oil planned to expand its 180,000 b/d refinery in
Garyville, Louisiana, to a capacity of 425,000 b/d, at a cost of about
$2.2-bil. He also noted that Motiva, a joint venture of Shell and Saudi
Refining, last month said it was considering expansions of its US Gulf Coast
refineries by 100,000 to 325,000 b/d.

--Cathy Landry, cathy_landry@platts.com

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