Legislation prompts refinery construction

Kristen Hays

Associated Press business writer

On June 17 House Republicans pushed through energy legislation that supporters say will prompt construction of refineries. The legislation, which Democrats say has no chance of Senate approval, would make the Energy Department a key agency regarding refinery permits in areas where a refinery has closed or that have high unemployment. The legislation also would streamline the permitting process, requiring decisions on permits within six months of applications.

Some Democrats argued that the Energy Department’s role as proposed would usurp the Environmental Protection Agency and state officials’ enforcement of clean air standards.

Cazalot also said oil companies need new breakthroughs in technology for various aspects of the business — from refining to exploration and production.

But most oil companies have cut back on such research, he said. The industry itself “never saw solid returns on our own grassroots research,” so companies “got lazy” and relied on the service industry to create new technologies.

Cazalot said he’d like to see more cooperation in developing technology, and “then we go out and beat each other’s brains out” in terms of how efficiently it is deployed.