Number of oil refineries in the U.S. 1982-2024
There were 132 active oil refineries in the United States as of January 1, 2024. This was an increase when compared to the previous year, although more refinery closures were expected for the coming years. Generally, figures have fallen from a peak of 254 refining plants in 1982 largely as a result of smaller refineries becoming unprofitable. In 2023, oil refining capacity in the U.S. stood at some 18.4 million barrels per day, still lower than pre-pandemic levels.
How dwindling demand outlooks impact U.S. refiners
The main reason for declining refinery numbers lies in the slowing of U.S. gasoline demand amid more widespread adoption of electric vehicles. It also reflects uncertainty regarding the financial prospects of future refinery projects as some of the major energy institutions predict a slowdown of global oil demand growth. In 2024, weak demand outlooks led to lower refinery margins, which further impacted the profitability of operators. However, at least in the U.S. the planned closure of two major refineries in 2025 is expected to tighten fuel supply in a way that would allow for greater refinery profit margins.
U.S. refines more oil than any other country
No other country refines as much petroleum as the U.S. In addition to being the world’s largest oil producer, the U.S. is also responsible for over 900 million metric tons of refined oil products being produced each year. China is a fellow major refiner of petroleum. Still, as EV’s take over domestic road transportation, its refining output is expected to decrease in the future.
