Big oil companies cancel expansion projects

| 6/12/2007

Instead of expanding their refinery capacity – which could drive fuel prices down – big oil is canceling expansion projects, according to the Wall Street Journal.

The newspaper reports that Valero, ConocoPhillips and Tesoro have all delayed or scrapped plans for refinery expansions or improvements.

According to the Journal, the oil companies used to argue that they couldn’t increase capacity because of environmental restrictions or poor return on investment.

But now, the newspaper reports that they’re blaming high construction costs and a shortage of skilled labor.