Via the Oil Drum, I see that President Bush is “encouraging new oil refineries be built at closed military bases.”

Speaking to small business leaders on Wednesday, Bush will call on federal agencies to encourage construction of new oil refineries at the sites of former military bases closed in recent years.

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The agencies would work with states, local communities and potential investors to encourage the use of the sites, the administration officials said.

The lack of adequate refining capacity is frequently cited by experts as one reason why gasoline prices have surged dramatically in recent years. No new refineries have been built in recent years even though the demand for gasoline has risen.

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Hmmm.

UPDATE: The Pentagon press release is out now, which indicates that this wasn’t just some off-the-cuff remark.