Thanks to Cyberedoubt for this link on an american oil refinery that won't be built for the lack of a guaranteed supply of crude oil. After Katrina I was blogging that the Gulf of Mexico refining complex would not be rebuilt. And this is why. Of course the residents of Yuma, AZ, might be glad that the refinery that supplies American gasoline will probably be in Mexico instead of their own back yard.
But if this business issue becomes a trend, it represents another huge loss for America. Refining is an essential industrial manufacturing process. If we cede that industry to other countries we are dependent on them to supply our gasoline. They get the refining margins, not us. They get the fat manufacturing paychecks. And why shouldn't they? They have the oil. They should get the value added profit of selling consumer products, instead of crude oil.
And for America? Since we can no longer make cars profiably, nor gasoline, maybe we should consider the idea that our way of life, which consists of driving the SUV to the mall, isn't working out so well.