X

Sign Up To Our Free Newsletter

Join Now

Thanks for subscribing to our free newsletter!

ERROR

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

  • 3 minutes Texas forced to have rolling brown outs. Not from downed power line , but because the wind energy turbines are frozen.
  • 7 minutes Scientists Warn That Filling The Sahara With Solar Panels Is A Bad Idea
  • 11 minutes United States LNG Exports Reach Third Place
  • 15 minutes Joe Biden's Presidency
  • 3 hours IS SAUDI ARABIA SENDING A MESSAGE TO BIDEN
  • 1 day America Makes Plans to Produce Needed Rare Earth Minerals Domestically
  • 8 hours Texas forced to have rolling black outs, primarily because of large declines in output from fossil fuel power plants
  • 1 day U.S. Presidential Elections Status - Electoral Votes
  • 3 days Former BP Exec "Biden not in war against oil" . . Really ?
  • 3 days Here we go - again: plug-in hybrids cost motorists more than what they were told
  • 3 days Texas Supply Chain Massacre
  • 1 day Top Conservative Lawyer Says Trump Can Stand Trial
  • 1 day “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 3 days An exciting development in EV Aviation: Volocopter

U.S. Refining Capacity Stays Flat Despite Oil Production Boom

Despite the fact that U.S. crude oil production has been setting records over the past few months, little new additional refinery capacity is being added across the United States, according to research firm Morningstar.

In 2017, operable refinery capacity in the U.S. stood at 18.568 million bpd, slightly up from the 18.402 million bpd capacity in 2016, EIA’s data shows.

“Primary crude distillation capacity is not expected to increase more than a tiny fraction in 2018 either,” Sandy Fielden, director of oil and products research at Morningstar, said in a report on Monday, as carried by the Houston Chronicle.

In the week to June 29, for example, U.S. gasoline production averaged 10.3 million bpd, with refineries operating at 97.1 percent of capacity and processing 17.7 million bpd of crude oil, last week’s EIA inventory report showed.

Crude oil production, on the other hand, has been at 10.9 million bpd over the past four weeks—the highest ever U.S. crude oil production.

In its June Short-Term Energy Outlook (STEO), the EIA forecasts that U.S. crude oil production will average 10.8 million bpd this year, up from 9.4 million bpd last year. In 2019, U.S. crude oil production is expected to average 11.8 million bpd.

Related: Big Oil’s Next Major Move

“Although major oil companies like ExxonMobil have announced plans to expand existing Gulf Coast refineries to process additional shale crude in the coming years, there is little talk of building new large-scale plants,” Fielden noted.

ExxonMobil said last year that it was investing US$20 billion between 2013 through at least 2022 to expand its Gulf Coast manufacturing capabilities as it takes advantage of the U.S. shale revolution.

There may not be talk of large refiners planning large-scale refineries, but there are “plans under way from several small players to build greenfield plants in North Dakota and Texas,” according to Morningstar’s Fielden.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • ffgjj on July 09 2018 said:
    This is "breaking news"?
  • Tom on July 09 2018 said:
    US Refining Capacity has always been driven by demand not US Oil Production. US Refining Capacity has been way ahead of US Production for years and still is. What's the point of building additional refining capacity as US Production increases unless your selling into the export market?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News