We do not need to build more oil refineries. For one, the likelihood of increased U.S. demand given all the changes in the energy market (even without an effective energy policy) is very low. Second, there is nothing preventing the current refineries from expanding (as they have done during the past 20 years). Therefore, government should not interfere. If someone thinks that it is a good investment, let them build it. The various steps already happening in the market + the implementation of an effective move from oil will actually reduce the demand for gasoline.
The current refined products market is very inefficient. The main reason is the different types of fuel standards (every state has one). It increases the price of gasoline to the consumer and reduces the nations’ flexibility. We need to reduce the number of fuel standards. Preferably, it should be done by cooperation between the state and federal governments. Just this step alone will dramatically increase our refining capacity.