The energy crises in the U.S. continues to look bleak: The Biden administration is at once demanding that U.S. oil producers pump more in order to lower prices at the pump, while at the same time the administration is blasting U.S. refiners and producers for "gouging" and looking at punishing them with a "windfall tax". To address these concerns, Chevron CEO Mike Wirth appeared on Bloomberg TV stating that adding refinery capacity is incredibly difficult, especially in the current environment. Wirth stated, "You're looking at committing capital 10 years out, that will need decades to offer a return for shareholders, in a policy environment where governments around the world are saying: we don't want these products." "We're receiving mixed signals in these policy discussions," Wirth added.

The United States hasn't had a new refinery built since the 1970's. As the following graphic shows, the rate of price increases for refined products like jet fuel, diesel, and gasoline, have surged far higher than the price of crude oil. Unfortunately, we should expect higher fuel prices for some time.

                                                                             (Source: William Sherman & Company)

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