US Total Refining Capacity Down Again in 2025 After Two Refinery Shutdowns: EIA

U.S. total refining capacity fell for a second consecutive year in 2025 following the closure of two major refineries without any new additions last year, the Energy Information Administration said Friday.

In its annual Refining Capacity Report, EIA data showed U.S. refining capacity, measured by operating atmospheric crude oil distillation capacity, fell to 19.117 million barrels per stream day as of Jan. 1, 2026, down from 19.398 million b/d a year ago.

EIA offers two sets of estimates for U.S. refining capacity. While barrels per stream day refers to the full production capacity with no allowance on downtime, barrels per calendar day are adjusted lower to reflect maintenance and unplanned works.

The decline in refining capacity last year reflected the shutdown of the LyondellBasell 264,776 b/d Houston facility and Phillips 66’s 138,700 b/d Los Angeles refinery.

LyondellBasell cited its decision to exit the refining business in March 2025, and Phillips 66 attributed its closure around mid-October to the high costs of operating an oil refinery in California.

While there has not been a new greenfield U.S. oil refinery in 50 years, several U.S. refiners have expanded the production capacity of their existing facilities to meet demand, which is far less costly and easier to get regulatory approvals.

Notable expansions include Marathon Petroleum’s 649,000 b/d Garyville, La., refinery and 267,000 b/d Robinson, Ill., refinery and Phillips 66’s 289,100 b/d Bayway refinery in Linden, N.J.

U.S. refining capacity has been on a steady decline following demand destruction related to the Covid-19 pandemic. Since 2020, Marathon Petroleum’s Martinez refinery and Phillips 66’s Rodeo refineries in Northern California along with a dozen other oil refineries were permanently converted to renewable diesel production facilities.

Reporting by Frank Tang, ftang@opisnet.com; Editing by Michael Kelly, mkelly@opisnet.com