No new refineries probably ever constructed once more within the U.S., Chevron CEO warns (NYSE:CVX)

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Joe Raedle/Getty Photographs Information Chevron (NYSE:CVX) CEO Mike Wirth stated Friday that he doesn’t anticipate one other oil refinery might be constructed within the U.S. ever once more, because of a long time of federal authorities insurance policies. “We have not had a refinery inbuilt america for the reason that Seventies. My private view is there’ll by no means be one other new refinery inbuilt america,” Wirth stated in an interview with Bloomberg. “You are taking a look at committing capital 10 years out, that can want a long time to supply a return for shareholders, in a coverage atmosphere the place governments all over the world are saying we do not need these merchandise,” Wirth stated. “At each stage of the system, the coverage of our authorities is to scale back demand, and so it’s extremely arduous in a enterprise the place investments have a payout interval of a decade or extra,” in keeping with Wirth. “And the acknowledged coverage of the federal government for a very long time has been to scale back demand on your merchandise.” Refining margins have exploded to historic highs on surging demand for gasoline and diesel; in keeping with the most recent information from AAA, the typical value for a gallon of gasoline within the U.S. hit a brand new file excessive of $4.761 on Friday. Chevron (CVX) additionally stated Friday that it expects prices will improve ~10% subsequent yr, as financial pressures on gear and labor shortages proceed to harm the oil business, in keeping with presentation slides at Bernstein Strategic Selections Convention

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