Your average tanker has well over a 40' draft and usually run about 900'.
Furthermore, do you know how much gasoline would be per gallon if we transported it solely by trucks? Talk about carbon footprint! Before you accuse someone of thinking only "halfway," perhaps you should try learning a little about the topic yourself.
Marathon completes $3.9 billion expansion in Garyville | NOLA.com
3.9 billion to build part of a refinery. This price reflects building were permits, pipeline, logistics, storage tanks, docks, emergency response, electrical power, utility systems, and contract service support network were already in place.
In addition to the problems already list in this thread.How does that work, anyway? Thinking about that logic i would have to wonder how the hell it would be more profitable for them to have more pipeline that needs to be maintained, a closer manufacturing point to the highly populated oil consuming northeast, and eliminating the expenditures on actually shipping oil thousands of miles out of the way to refine it and ship it back. I am glad they told you it would be cheaper to build a pipeline across the US, but that is a really bad excuse. I cannot even imagine that in the short run it would be cheaper to build a thousand or so miles of pipeline that needs to be maintained just to avoid the cost of new refineries more local. The only place i see it being better for conomically is texas, and perhaps it helps an individual oil company over certain others.
But please do show me the costs of new refineries as opposed to the costs of the pipeline, and if you want some extra credit the costs of shipping the finished product from the texas coast as opposed from the northeast in comparison with a multiple distribution point model where the northeast is supplied by the northeast refineries while texas would supply southern areas. Sorry, if you want to make the claim please do provide some support for it aside from the oil companies say so.
Asphalt. the crude coming out of Canada is heavy (high asphalt content). Northern refineries struggle with asphalt logistics in the winter. No one paves roads in the winter up north. That leaves a northern refineries with few options: Coke the asphalt, turn it into a coal like substance (if they can afford the process unit), store it until summer (if they have the tank capacity), sell the asphalt at deep discounts and barge/truck it south or change the crude feed slate to lighter crude, which consequently would have to be piped in.
Logistics. If you take in consideration the 3-2-1 crack spread, A 500,000 barrel/day refinery would make 300K of gasoline and 200k of fuel oil approximately. A large gas tanker holds 12000 gallons of gasoline. 300000 x 42/12000 = 1050 gas and 700 fuel oil (diesel/kerosene) trucks would have to be loaded everyday without interruption. That would be one impressive loading rack and highway system.
Supply and Demand. America is already a net exporter of refined oil products. If a company took on the billions of expense to build a new refinery they would be selling there products into a saturated market. From jump street a new refinery would be discounting products or shipping into international markets. The latter options would take yet another pipeline.
A new refinery with the latest and greatest technology, could enter the market, sell cheap (a win for the customer) and stay profitable. Problem is small marginal refineries might get pushed out of business. It makes sense instead of starting from scratch to just buy an old marginal refinery with permits, logistics, etc... already in place and upgrade/expand it.