Archive · 21 Jun 2025
US Refining Capacity Shrinks Amidst Demand Uncertainty
The US is making less gasoline and diesel.
After a drop in demand during the pandemic, refineries added more capacity.
Now, some are shutting down because the demand outlook is uncertain.
Some of the older, smaller refineries are closing, while larger ones on the Gulf Coast are getting bigger.
The total amount of oil that can be processed has decreased, and the biggest refinery in the country is now in Texas.
US refining capacity decreased by 43,000 barrels a day in 2024, reaching 18.3 million barrels a day.
The decline follows expansions by companies like ExxonMobil, Valero, Marathon Petroleum, and Citgo after the pandemic.
LyondellBasell's Houston refinery and Phillips 66's Los Angeles plant have closed or will close.
Valero's Benicia refinery in California will close in early 2026.
Motiva's Port Arthur refinery in Texas has become the largest in the US, surpassing Marathon's Galveston Bay plant.
- Who
- US refiners
- What
- US refining capacity is declining.
- When
- Operating capacity in 2024 decreased.
- Where
- United States
- Why
- Uncertain fuel demand and economic challenges for smaller refineries.
- 2024 Capacity
- 18.3 million barrels a day
- Capacity Decrease
- 43,000 barrels a day in 2024
- Largest Refinery
- Motiva's Port Arthur refinery
- Motiva's Capacity
- 641,000 barrels a day
- LyondellBasell Refinery Closure
- Houston, TX
- Phillips 66 Refinery Closure
- Los Angeles, CA
- Valero Refinery Closure
- Benicia, CA