Since 1977, the United States has not constructed a single new traditional oil refining facility. This absence of new facilities, alongside increasing demand for products like gasoline, diesel, and asphalt, has put a significant strain on industries reliant on consistent fuel supplies. Clean Refineries Inc. is addressing this gap by offering sustainable solutions through advanced hydrocarbon processing technologies with net-zero emissions, focusing on high-demand regions like Oklahoma and the Permian Basin.
The 1977 Refining Stalemate: Why Has the U.S. Stopped Building Refineries?
Several factors have contributed to the halt in refinery construction since 1977, including:
Regulatory Hurdles: The Clean Air Act and subsequent environmental regulations have created significant challenges for new facilities to gain approval. These complex legal landscapes have made it more practical to upgrade or expand existing refineries rather than build new ones.
Shrinking Margins: The economics of building new hydrocarbon processing facilities became less attractive as profit margins narrowed, leading companies to optimize existing facilities instead of investing in costly new projects.
Globalization: Many refining operations have been outsourced to countries with fewer regulatory hurdles, where costs are lower. This has resulted in the U.S. importing finished products rather than processing domestically.
The Consequences of a Processing Shortage
For regions like Oklahoma and the Permian Basin, the lack of processing capacity has become a critical bottleneck, affecting industries and infrastructure projects alike:
Supply Shortages and Delays: Industries in places like Duncan, Oklahoma, face constant fuel shortages, impacting agriculture, construction, and logistics. Additionally, road construction projects across Oklahoma have been delayed due to the shortage of asphalt.
Permian Basin's Production vs. Processing Capacity: The Permian Basin produces over 6.1 million barrels per day (BPD) of crude oil, yet much of it is shipped to the Gulf Coast for processing, leaving local industries without the refined products they need.
Aging Infrastructure: Without new hydrocarbon processing facilities, existing refineries are operating at maximum capacity, often with outdated technology. This results in frequent shutdowns and reduced efficiency, further contributing to supply shortages.
Clean Refineries’ Mission: A Sustainable Solution to the Processing Crisis
Clean Refineries Inc. is at the forefront of addressing the U.S. processing shortage by introducing net-zero emissions hydrocarbon processing plants in Oklahoma and the Permian Basin. These new facilities will be the first of their kind built in the U.S. in over 40 years, marking a transformative step for the industry.
Our approach includes:
Serving Local Communities: By building small, modular hydrocarbon processing facilities in smaller towns and regions with high demand, Clean Refineries aims to decentralize operations, ensuring that local industries have access to the refined products they need, reducing dependence on distant Gulf Coast refineries.
Decentralizing Processing and Reducing the Carbon Footprint: Clean Refineries' modular facilities are designed for efficiency and sustainability. These smaller, decentralized sites help minimize the carbon footprint associated with transporting crude oil and refined products across vast distances.
Modular and Efficient Designs: Instead of constructing large, traditional refineries, Clean Refineries is deploying smaller, modular units that can be built more quickly and cost-effectively. This innovative approach allows us to meet the demands of regions like Oklahoma and the Permian Basin while maintaining a sustainable and efficient operation.
Bridging the Gap Between Fossil Fuels and Sustainable Energy
While the transition to green energy is underway, the U.S. will continue to rely on fossil fuels in the near future. Clean Refineries aims to bridge this gap by offering environmentally responsible, economically viable solutions that address both current needs and future sustainability goals.
Our vision includes:
Carbon Capture Technology: Incorporating carbon capture and storage (CCS) systems to minimize the environmental impact of our hydrocarbon processing operations.
Energy Independence: By processing more products locally, we reduce the U.S.’s reliance on imported refined products, supporting the country’s long-term energy independence.
A Path Forward with Clean Refineries' Net-Zero Facilities
For decades, the U.S. has avoided building new hydrocarbon processing facilities, creating a growing gap between crude oil production and the availability of refined products. Clean Refineries is stepping in to fill that gap with a commitment to net-zero emissions and local solutions.
By investing in modular, decentralized hydrocarbon processing facilities, Clean Refineries supports local economies, reduces environmental impact, and ensures that the U.S. remains energy-independent. With innovation, sustainability, and energy independence at our core, Clean Refineries is transforming the processing industry for a better, more secure future.
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