The US Energy Information Administration (EIA) has reported a rise in US refining capacity for the second time since the COVID-19 pandemic. As of early 2024, the US operable atmospheric crude oil distillation capacity stands at 18.4 million barrels per calendar day (b/cd). This marks a 2% increase from the beginning of 2023.
Calendar day capacity measures the volume of crude oil a distillation unit can process over 24 hours under typical operating conditions. This includes both planned and unplanned maintenance. The capacity reported to the EIA may differ from other headline figures due to variations in estimation methods.
In the past decade, US refinery capacity growth has mostly come from expanding existing facilities, reactivating decommissioned units, or adding smaller facilities. Capacity reductions are typically due to decommissioned facilities or transitions from petroleum refining to renewable fuels.
Changes in US Refining Capacity in 2023
In 2024, the three largest US refiners—Marathon, Valero, and ExxonMobil—reported capacity increases from 2023. However, Phillips 66, the fourth-largest refiner, reduced its capacity last year. PBF Energy surpassed Chevron to become the fifth-largest US refiner by capacity.
The increase in capacity at the start of 2024 is mainly due to expansions at existing facilities. ExxonMobil, for instance, completed a significant expansion at its Beaumont, Texas, refinery in March 2023, raising its capacity from 369,000 b/cd to 609,000 b/cd.
Valero also expanded its Port Arthur refinery, increasing its distillation capacity by 25,000 b/cd to 360,000 b/cd. This expansion included a 50,000 b/cd increase in coking capacity, enhancing the facility’s ability to process heavier crude oils into high-value products like gasoline and diesel.
Marathon’s Galveston Bay refinery increased its capacity by 6%, reaching 631,000 b/cd. This expansion made it the largest US refinery by atmospheric distillation capacity, surpassing Motiva’s Port Arthur refinery, which has a capacity of 626,000 b/cd.
Key Refining Transactions in 2023
Several major refining transactions occurred in 2023. In February, Canadian refiner Cenovus acquired the 150,800 b/cd Toledo refinery in Ohio from BP-Husky Refining. In June, ExxonMobil sold its 61,500 b/cd refinery in Billings, Montana, to Par Montana, a unit of Par Pacific. In September, Oneok acquired Magellan Midstream Partners, including Magellan’s 42,500 b/cd condensate splitter in Corpus Christi, Texas, and its network of pipelines for petroleum products and natural gas liquids.
Recent Changes in Refining Capacity
The 2024 Refinery Capacity Report reflects changes up to January 1, 2024. Phillips 66 ceased petroleum refining at its Rodeo refinery in February 2024. The facility, which had reported a capacity of 120,200 b/cd in 2023, scaled back to 58,200 b/cd by the start of 2024. Although this reduction does not fully capture the end of petroleum refining, the loss of capacity is included in the EIA’s monthly data starting March 2024. The facility is shifting to produce biofuels, particularly renewable diesel.
LyondellBasell, which had planned to close its 263,776 b/cd refinery in Houston by the end of 2023, has delayed the closure. The company now expects to shut down the refinery by the end of the first quarter of 2025.