Despite expansions by major companies like ExxonMobil, Valero, Marathon, and Citgo, refinery operations are once again shrinking.
U.S. refining capacity declined in 2024, dropping by 43,000 barrels per day to 18.3 million barrels per day, according to a new Energy Information Administration report.
The contraction comes after several years of fluctuation, with pandemic-era refinery closures pushing capacity below 18 million barrels a day for the first time since 2014.
Despite expansions by major companies like ExxonMobil, Valero, Marathon, and Citgo, refinery operations are once again shrinking. This year, LyondellBasell permanently shut its 264,000-barrel-per-day Houston refinery, while Phillips 66 and Valero plan to close two California plants by 2026.
These closures could drive national capacity back to pandemic-era lows near 17.8 million barrels daily. Meanwhile, large Gulf Coast refineries continue to grow.
Motiva’s Port Arthur, Texas facility, owned by Saudi Aramco, surpassed Marathon’s Galveston Bay plant to become the nation’s largest, processing up to 651,000 barrels a day by December. Smaller, less complex refineries struggle to remain viable amid rising competition.