US Refining Capacity Declining

EIA figures out yesterday in its latest Refinery Capacity Report showed a refining capacity decline in the US of 125,790 barrels per day (bpd) last year on top of the 800,000 bpd drop in 2020.

• US refining capacity has fallen by 5.4%, or 1.03 million bpd to 17.9 million bpd since it peaked in 2019 at 18.98 million bpd. Capacity in 2021 dropped 4.5% to 18.13 million bpd.
• The biggest factor in the latest decline of refining capacity was closure of the 255,600-bpd Alliance, Louisiana, refinery, following extensive damage from last year's Hurricane Ida according to the EIA.
• US refineries are running at about 94% of operable capacity, the highest since September 2019.
• National capacity could decline further if there is an early shutdown of Lyondell Basell Industries 263,776 bpd Houston refinery.
• Six refineries, accounting for the shut capacity, have permanently shut since the pandemic began in 2020, with two converting to renewable diesel production.
• Link to the report: https://www.eia.gov/petroleum/refinerycapacity/