Since 1990, US oil consumption has only increased about 3.7 million barrels.
http://tonto.eia.doe.gov/dnav/pet/hist/mttupus2a.htm
The last 5 years has been fairly consistent with a slight 1 million barrel increase.
http://tonto.eia.doe.gov/dnav/pet/pe...s_mbblpd_a.htm
Current refinaries are ONLY running 80%-85% of capacity
http://tonto.eia.doe.gov/dnav/pet/pe..._dcu_nus_w.htm
Internal Chevron document, November 30, 1995
A senior energy analyst at the recent API (American Petroleum Institute) convention warned that if the U.S. petroleum industry doesn’t reduce its refining capacity, it will never see any substantial increase in refining margins… However, refining utilization has been rising, sustaining high levels of operations, thereby keeping prices low.
Internal Texaco document, March 7, 1996
As observed over the last few years and as projected well into the future, the most critical factor facing the refining industry on the West Coast is the surplus refining capacity, and the surplus gasoline production capacity. The same situation exists for the entire U.S. refining industry. Supply significantly exceeds demand year-round. This results in very poor refinery margins, and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline.
Taken from the Wyden report of 2001.
In the mid-1990s too much refining capacity, not too little, concerned the nation’s major oil companies. At that time, the oil and gas industry faced what they termed “excess refining capacity,” a circumstance they viewed as a financial liability that drove down overall profit margins. The industry reduced the total amount of potential supply by closing down more than 50 refineries in the past decade. Since 1995 alone, 24 refinery closings have taken nearly 830,000 barrels of oil per day.
On June 11, 2001, the Wall Street Journal reported that Marathon Ashland Petroleum intentionally withheld reformulated gasoline supply in the Midwest in a contrived effort to keep prices, and profits, artificially high.3 Although Marathon was reported to have operated alone in this instance, documents suggest that over the past five years other leading oil companies have worked together to control the amount of gasoline available on the market.
There's more... Read it yourself...
http://wyden.senate.gov/issues/wyden_oil_report.pdf