US Refining Capacity Rises for the First Time Since Pandemic

The US has seen a rise in refining capacity for the first time since the onset of the COVID-19 pandemic, as reported by the US Energy Information Administration (EIA). The increase, which amounts to 0.6% at the start of 2023 compared to 2022, brings the total US operable atmospheric crude oil distillation capacity to 18.1 million barrels per day (bpd), up by 117,000 bpd from the previous year. Despite a decrease in the number of operable refineries, overall capacity has increased due to the reactivation of a previously retired crude oil distillation unit at PBF Energy's Paulsboro, New Jersey refinery, and minor capacity increases in several other states. The report also notes that refinery inputs have increased more than refinery capacity, leading to a rise in annual refinery utilization in 2022 to 92%, the highest level since 2018.

The increase in refining capacity is a significant development, particularly in light of the closure of a small facility in Santa Maria, California. However, the overall capacity was bolstered by PBF Energy's decision to reactivate a previously retired crude oil distillation unit at its refinery in Paulsboro, New Jersey. This unit alone saw an increase in crude oil capacity from 100,000 bpd in 2022 to 160,000 bpd in 2023. Additionally, minor capacity increments were reported by refineries in several states including Alabama, Alaska, Indiana, Illinois, Kansas, Louisiana, Minnesota, Ohio, and Texas. These increments collectively contributed to the annual increase in 2023, compared to 2022. It's important to note that the 2023 'Refinery Capacity Report' does not reflect changes in US refining capacity that were not in effect as of January 1, 2023.