Why do the oil industry not build new refineries while opening back the capped oil wells?

Question

there are so many oil wells capped because that oil could not be sold for a higher price......

Answer 1

A refinery processes crude into gasoline, diesel,  and #2 heating oil.  OIL WELLS are drilled to extract crude from the ground.  

We don't really need more processing plants- we need more resource (crude)

Capped wells in many instances can yield 10-15% additional product and is a more economical means to get more out of the ground. I hope this clarifies your confusion.