ExxonMobil CEO foresees big hurdles for US refiners

The chairman and CEO of ExxonMobil says he can't imagine any company building new US refineries and that clean-air rules will further strain gasoline-making capacity in the next few years. Lee Raymond said a big hurdle in the short run is that US refiners are gearing up to spend $ 8 bn over the next few years to meet government standards for reducing sulphur content in gasoline and diesel fuel.
The result, he said, would be refineries closing temporarily for retooling and leaving some independent gasoline marketers unable to find supplies. "It's a very complex system, and the more you load on to it, as we're finding out, the bigger the problem," Raymond said.
Raymond said companies are reluctant to build new refineries because profit margins are too small -- they could invest in other things "and you wouldn't have the aggravation of everybody accusing you of always cheating" by manipulating gasoline prices. Raymond made the comments after the meeting of ExxonMobil shareholders, where he announced a 2-for-1 stock split and extra 2-cent dividend in July. Last year, the Irving-based company earned $ 17.7 bn on sales of $ 232.7 bn -- both records for a US company.