Petroleum refining in the United States

Last updated

US oil refinery capacity .mw-parser-output .legend{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .legend-color{display:inline-block;min-width:1.25em;height:1.25em;line-height:1.25;margin:1px 0;text-align:center;border:1px solid black;background-color:transparent;color:black}.mw-parser-output .legend-text{} US oil refinery distillation capacity (left) Gross inputs to refineries (left) Percent utilization of refinery operable capacity (right) US oil refinery capacity.webp
US oil refinery capacity
  US oil refinery distillation capacity (left)
  Gross inputs to refineries (left)
  Percent utilization of refinery operable capacity (right)
ExxonMobil's oil refinery in Baton Rouge is the sixth-largest in the United States ExxonMobil Baton Rouge.jpg
ExxonMobil's oil refinery in Baton Rouge is the sixth-largest in the United States
Anacortes Refinery (Marathon), on the north end of March Point southeast of Anacortes, Washington Anacortes Refinery 31911.JPG
Anacortes Refinery (Marathon), on the north end of March Point southeast of Anacortes, Washington

Petroleum refining in the United States in 2024 had a capacity of 18.4 million barrels per day. [2] Although the US was the world's largest net importer of refined petroleum products as recently as 2008, the US became a net exporter in 2010, and in 2014 was the largest exporter and the largest net exporter of refined petroleum. [3] As of January 2019, there were 135 operating refineries in the US, distributed among 30 states. [4]

Contents

Largest petroleum refining companies in the United States

RankCorporationBarrels/DayNo. of US RefineriesStates
1 Marathon Petroleum 2,950,00013AK, CA, IL, KY, LA, MI, MN, ND, OH, TX, UT, WA
2 Valero Energy 2,181,30013CA, LA, OK, TN, TX
3 ExxonMobil 2,008,0004IL, LA, TX
4 Phillips 66 1,678,2009CA, IL, LA, MT, NJ, OK, TX, WA
5 Chevron 1,037,6605CA, MS, TX, UT
6 PBF Energy 950,2006CA, DE, LA, NJ, OH
7 Citgo 805,1853IL, LA, TX
8 BP 750,4003.5AK, IN, OH, WA
9 Koch 673,5002MN, TX
10 Saudi Aramco (Motiva)630,0001TX
Total operable atmospheric crude oil distillation capacity as of 1 January 2022. ExxonMobil capacity adjusted for sale of Billings refinery [5] and expansion of Beaumont refinery. [6] Phillips 66 capacity includes 50% ownership of Wood River and Borger refineries. BP capacity includes 50% ownership of Toledo Refinery. Source: [7]

Largest petroleum refineries in the United States

RankRefineryBarrels/DayOwnerState
1 Galveston Bay Refinery 631,000 Marathon Petroleum Texas
2 Port Arthur Refinery 626,000 Saudi Aramco (Motiva) Texas
3Beaumont Refinery609,024 ExxonMobil Texas
4 Garyville Refinery 597,000 Marathon Petroleum Louisiana
5 Baytown Refinery 564,400 ExxonMobil Texas
6 Baton Rouge Refinery 522,500 ExxonMobil Louisiana
7Lake Charles Refinery455,000 Citgo Louisiana
8 Whiting Refinery 435,000 BP Indiana
9Los Angeles Refinery365,000 Marathon Petroleum California
10Port Arthur Refinery360,000Valero Texas
Total operable atmospheric crude oil distillation capacity as of 1 January 2024. Source: [8]

History

The Shell Martinez Refinery, in Martinez, California, has operated continuously since its construction in 1915. Oil refinery in Martinez, California.JPG
The Shell Martinez Refinery, in Martinez, California, has operated continuously since its construction in 1915.

The first known US petroleum refiner was Samuel Kier of Pittsburgh, who in the 1850s produced an illuminating oil for miners' lamps.

American petroleum refining largely grew out of oil shale refining. When the Drake Well started producing in 1859, the oil shale industry was growing rapidly, and establishing refineries near cannel coal deposits along the Ohio River Valley. As oil production increased, the oil shale refiners discovered that their refining process worked just as well with petroleum, and that petroleum was a cheaper raw material than shale oil. In 1861, the existing oil shale refiners switched to petroleum feedstock, and the oil shale mines shut down.

In the 1800s, the principal refined product was kerosene for illuminating oil. The heaviest fraction was used as lubricating oil. A market developed for fuel oil as it was discovered that petroleum was superior to coal in powering the large engines of ships and railroad locomotives.

The prevalence of the automobile in the early 1900s created a mass market for gasoline, and a shortage soon developed of the lighter gasoline fractions of crude oil. The shortage was solved by the invention of fluid catalytic cracking, which broke long hydrocarbon chains into smaller molecules.

The newest large refinery built in the US was completed in 1976 in Garyville, Louisiana. [9] Since then, while some existing refineries have expanded, new refinery construction has faced significant barriers in environmental regulation, permitting, and local political opposition. [10] Industrial accidents such as the 2019 Philadelphia Energy Solutions refinery explosion have led to refinery closures which reversed some of the gains made through expansion of refineries. [11]

Geography

USEIA - Map of US Oil Refineries USEIA - Map of US Oil Refineries.png
USEIA - Map of US Oil Refineries

Most large refineries are near navigable waterways, especially seaports or Great Lakes ports. The single largest concentration of refineries is along the Gulf Coast. [12] Although there are refineries in 30 states, just three states dominate US refining: Texas (47 operating refineries), Louisiana (19), and California (18). As of January 2015, these three states contain 45% of all US refineries and 59% of all US refining capacity. [13]

Products

The three largest-volume products of US refineries are gasoline, fuel oil (including diesel fuel and home heating oil), and aviation fuel, which together make up more than 84 percent of output. [14]

Byproduct sulfur

Petroleum refineries recover elemental sulfur as a byproduct. In 2012, US oil refineries recovered 7.4 million metric tons of sulfur, worth about $915 million, and amounting to 88% of the elemental sulfur produced in the US. [15] Sulfur removal (as well as other contaminants) was a key theme of US refinery investment during 1990 to 2017 leading to additional sulfur production. New sulfur regulations enacted by the EPA have steadily reduced sulfur content. Since 2006, ultralow sulfur diesel with a maximum sulfur content of 15 ppm has been standard for on-road vehicles, extended to non-road vehicles in 2010, and to locomotives and marine vessels by 2012. Starting in January 2017, gasoline has been limited to an annual average of 10 ppm sulfur, with a maximum of 80 ppm allowed per batch at the refinery gate and up to 95 ppm downstream. [16] At this point, nearly all road and industrial fuels produced in the US have been substantially desulfurized to levels of 15 parts per million or less.

International trade

Net US exports (exports minus imports) of refined petroleum products, 1980-2013. Data from OPEC US Net Exports of Refined Petroleum Products 1980-2013.png
Net US exports (exports minus imports) of refined petroleum products, 1980-2013. Data from OPEC

The United States was for decades, through 2008, the world's largest net importer of refined petroleum products. But the situation quickly changed in 2008 as American refineries became much more cost-competitive due to large increases in US production of oil, natural gas, and natural gas liquids. The US became a net exporter of refined petroleum in 2010, and since 2013 has been the world's largest net exporter of refined petroleum. In 2014, the US exported 3.83 million barrels per day and imported 1.35 million barrels per day of refined petroleum, for net exports of 2.48 million barrels per day. [17] The largest net importers of US refined products in 2017 were, in descending order: Mexico, Brazil, Japan, China, and Singapore. [18]

The competitive advantage of US refiners has been attributed to the lower price of American crude oil, as reflected by the Oklahoma-based index price West Texas Intermediate, versus the more expensive European-based index price Brent Crude. Due to the great surge in American production of oil, natural gas, and natural gas liquids since 2008, those products have been cheaper in the North American market than worldwide, giving American refiners a major cost advantage. [19] The discount on US crude is partially attributed to the long-standing federal ban on exports of American crude oil. [20]

European Union refiners have been hard-hit by the growth in US exports. They lost much of their previous gasoline exports to the US, and also market share in the worldwide market to the newly competitive US refineries. In addition, US refineries have increasingly exported petroleum products to the EU. In 2008, US exports of gas oil (home heating fuel) surged to a 31% market share in the EU, up from 5% the previous year; in 2011, US imports held a 37% market share of gasoil in the EU. [21] There has been discussion that EU refineries would have to shut down without government intervention. [22]

Environmental impact

Refineries have been responsible for air, water, and soil pollution in the United States. Some former refinery sites are Superfund sites such as the Diamond Head Oil Refinery Superfund Site in Kearny, New Jersey. Refineries have paid millions of dollars in settlements and fines for violations of environmental laws. [23] Some settlements have included promises to reduce toxic emissions.

Major refinery fires include the 1956 McKee refinery fire, the 1975 Philadelphia Gulf refinery fire and 2005 Texas City refinery explosion.

Related Research Articles

<span class="mw-page-title-main">Petroleum</span> Naturally occurring combustible liquid

Petroleum is a naturally occurring yellowish-black liquid mixture. It consists mainly of hydrocarbons, and is found in geological formations. The term petroleum refers both to naturally occurring unprocessed crude oil, as well as to petroleum products that consist of refined crude oil.

<span class="mw-page-title-main">Oil refinery</span> Facility that processes crude oil

An oil refinery or petroleum refinery is an industrial process plant where petroleum is transformed and refined into products such as gasoline (petrol), diesel fuel, asphalt base, fuel oils, heating oil, kerosene, liquefied petroleum gas and petroleum naphtha. Petrochemical feedstock like ethylene and propylene can also be produced directly by cracking crude oil without the need of using refined products of crude oil such as naphtha. The crude oil feedstock has typically been processed by an oil production plant. There is usually an oil depot at or near an oil refinery for the storage of incoming crude oil feedstock as well as bulk liquid products. In 2020, the total capacity of global refineries for crude oil was about 101.2 million barrels per day.

<span class="mw-page-title-main">Tesoro Corporation</span> American energy company

Tesoro Corporation, known briefly as Andeavor, was a Fortune 100 and a Fortune Global 500 company headquartered in San Antonio, Texas, with 2017 annual revenues of $35 billion, and over 14,000 employees worldwide. Based on 2017 revenue, the company ranked No. 90 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.

Crack spread is a term used on the oil industry and futures trading for the differential between the price of crude oil and petroleum products extracted from it. The spread approximates the profit margin that an oil refinery can expect to make by "cracking" the long-chain hydrocarbons of crude oil into useful shorter-chain petroleum products.

<span class="mw-page-title-main">Petroleum industry in Canada</span>

Petroleum production in Canada is a major industry which is important to the overall economy of North America. Canada has the third largest oil reserves in the world and is the world's fourth largest oil producer and fourth largest oil exporter. In 2019 it produced an average of 750,000 cubic metres per day (4.7 Mbbl/d) of crude oil and equivalent. Of that amount, 64% was upgraded from unconventional oil sands, and the remainder light crude oil, heavy crude oil and natural-gas condensate. Most of the Canadian petroleum production is exported, approximately 600,000 cubic metres per day (3.8 Mbbl/d) in 2019, with 98% of the exports going to the United States. Canada is by far the largest single source of oil imports to the United States, providing 43% of US crude oil imports in 2015.

Sources include: Dow Jones (DJ), New York Times (NYT), Wall Street Journal (WSJ), and the Washington Post (WP).

Global strategic petroleum reserves (GSPR) refer to crude oil inventories held by the government of a particular country, as well as private industry, to safeguard the economy and help maintain national security during an energy crisis. Strategic reserves are intended to be used to cover short-term supply disruptions.

<span class="mw-page-title-main">National Iranian Oil Refining and Distribution Company</span> Part of the Ministry of Petroleum of Iran

National Iranian Oil Refining and Distribution Company (NIORDC) is part of the Ministry of Petroleum of Iran. NIORDC was established on 8 March 1991 and undertook to perform all operations relating to refining and distribution of oil products.

<span class="mw-page-title-main">United States energy independence</span> Idea of eliminating the need for the United States to import foreign sources of energy

United States energy independence is the concept of eliminating or substantially reducing import of petroleum to satisfy the nation's need for energy. Some proposals for achieving energy independence would permit imports from the neighboring nations of Canada and Mexico, in which case it would be called North American energy independence. Energy independence is espoused by those who want to leave the US unaffected by global energy supply disruptions and would restrict reliance upon politically unstable states for its energy security.

<span class="mw-page-title-main">Gdańsk Refinery</span> Oil refinery in Gdańsk, Poland

Gdańsk oil refinery is a 10.5 million tonne per year refinery located near the Polish city of Gdańsk on the Baltic Sea. The refinery was established in 1975 to supply fuels and lubricants, and has undergone several upgrades and expansions to increase its capacity and the range of products available. It now has a Nelson complexity index of 11.1. It is one of two oil refineries in Poland, the other is Plock refinery.

Western Refining, Inc., is a Texas-based Fortune 200 and Global 2000 crude oil refiner and marketer operating primarily in the Southwestern, North-Central and Mid-Atlantic regions of the United States. Western Refining (WNR) has been publicly traded on the New York Stock Exchange since January 2006 and is the fourth largest publicly traded independent refiner and marketer in the nation.

<span class="mw-page-title-main">Petroleum in the United States</span>

Petroleum has been a major industry in the United States since the 1859 Pennsylvania oil rush around Titusville, Pennsylvania. Commonly characterized as "Big Oil", the industry includes exploration, production, refining, transportation, and marketing of oil and natural gas products. The leading crude oil-producing areas in the United States in 2023 were Texas, followed by the offshore federal zone of the Gulf of Mexico, North Dakota and New Mexico.

<span class="mw-page-title-main">Oil reserves in Canada</span>

Oil reserves in Canada were estimated at 172 billion barrels as of the start of 2015 . This figure includes the oil sands reserves that are estimated by government regulators to be economically producible at current prices using current technology. According to this figure, Canada's reserves are third only to Venezuela and Saudi Arabia. Over 95% of these reserves are in the oil sands deposits in the province of Alberta. Alberta contains nearly all of Canada's oil sands and much of its conventional oil reserves. The balance is concentrated in several other provinces and territories. Saskatchewan and offshore areas of Newfoundland in particular have substantial oil production and reserves. Alberta has 39% of Canada's remaining conventional oil reserves, offshore Newfoundland 28% and Saskatchewan 27%, but if oil sands are included, Alberta's share is over 98%.

<span class="mw-page-title-main">Petroleum industry in Iran</span> Overview of the petroleum industry of Iran

Iran is an energy superpower and the petroleum industry in Iran plays an important part in it. In 2004, Iran produced 5.1 percent of the world's total crude oil, which generated revenues of US$25 billion to US$30 billion and was the country's primary source of foreign currency. At 2006 levels of production, oil proceeds represented about 18.7% of gross domestic product (GDP). However, the importance of the hydrocarbon sector to Iran's economy has been far greater. The oil and gas industry has been the engine of economic growth, directly affecting public development projects, the government's annual budget, and most foreign exchange sources.

Energy in Algeria encompasses the production, consumption, and import of energy. As of 2009, the primary energy use in Algeria was 462 TWh, with a per capita consumption of 13 TWh. Algeria is a significant producer and exporter of oil and gas and has been a member of the Organization of the Petroleum Exporting Countries (OPEC) since 1969. It also participates in the OPEC+ agreement, collaborating with non-OPEC oil-producing nations. Historically, the country has relied heavily on fossil fuels, which are heavily subsidized and constitute the majority of its energy consumption. In response to global energy trends, Algeria updated its Renewable Energy and Energy Efficiency Development Plan in 2015, aiming for significant advancements by 2030. This plan promotes the deployment of large-scale renewable technologies, such as solar photovoltaic systems and onshore wind installations, supported by various incentive measures.

<span class="mw-page-title-main">Tema Oil Refinery</span> Oil refinery in Greater Accra Region of Ghana

The Tema Oil Refinery (TOR) is one of two crude oil refineries in Ghana. In 1977, the Government of Ghana became the sole shareholder. The name of the refinery was changed to the Tema Oil Refinery in 1991. The refinery was first named the Ghanaian Italian Petroleum Company (GHAIP).

<span class="mw-page-title-main">Natural gas in the United States</span>

Natural gas was the United States' largest source of energy production in 2016, representing 33 percent of all energy produced in the country. Natural gas has been the largest source of electrical generation in the United States since July 2015.

Washington state has the fifth highest oil refining capacity of any state. As of 2018, there are 5 refineries in Washington state with a joint capacity of 637,700 b/d. They are, in order of greatest b/d capacity, Cherry Point refinery, Puget Sound refinery, Marathon Anacortes refinery, Ferndale refinery and U.S. Oil refinery.

According to the United States Energy Information Administration (EIA), Pakistan may have over 9 billion barrels (1.4×109 cubic metres) of petroleum oil and 105 trillion cubic feet (3.0 trillion cubic metres) in natural gas (including shale gas) reserves.

References

  1. ↑ "U.S. Energy Information Administration: Top 10 U.S. Refineries Operable Capacity". US EIA. n.d. Retrieved 2019-01-04.
  2. ↑ "EIA: US refining capacity increased in 2023 with expansions at existing facilities". Hydrocarbon Engineering. 2024-07-31. Retrieved 2024-11-03.
  3. ↑ Annual Statistical Bulletin OPEC 2015
  4. ↑ "When was the last refinery built in the United States?". Energy Information Administration . Retrieved 2019-01-04.
  5. ↑ "Par Pacific takes ownership of Billings refinery, related assets". www.ogj.com. Retrieved 2023-06-15.
  6. ↑ "ExxonMobil boosts fuel supply with $2 billion Beaumont refinery expansion". ExxonMobil. Retrieved 2023-04-20.
  7. ↑ US Energy Information Administration, Table 5, 2019.
  8. ↑ "Refining crude oil - refinery rankings - U.S. Energy Information Administration (EIA)". www.eia.gov. Retrieved 2024-12-17.
  9. ↑ "FREQUENTLY ASKED QUESTIONS (FAQS):When was the last refinery built in the United States?". U.S. Energy Information Administration. Energy Information Administration. Retrieved 13 July 2020.
  10. ↑ Mouawad, Jad (9 May 2005). "No New Refineries in 29 Years? There Might Well Be a Reason". New York Times . Retrieved 13 July 2020.
  11. ↑ "Philadelphia refinery closing reverses two years of U.S. capacity gains". Reuters. Houston. 2019-07-05. Retrieved 2022-11-27.
  12. ↑ Energy Information Administration, Much of the country’s refinery capacity is concentrated along the Gulf Coast, 19 July, 2012.
  13. ↑ Energy Information Administration, Refining capacity by state.
  14. ↑ US Energy Information Administration, Refinery Yield accessed 26 July 2015.
  15. ↑ Lori E. Apodaca, Sulfur, US Geological Survey, 2012 Minerals Yearbook, Feb. 2015.
  16. ↑ "US: Fuels: Diesel and Gasoline | Transport Policy". www.transportpolicy.net. Retrieved 2024-11-03.
  17. ↑ Data Download, Tables 5.4 and 5.7 OPEC 2014
  18. ↑ Net imports of products int the U.S. by country Energy Information Administration
  19. ↑ Nicolas Sakelaris, "How the shale boom translates into big profits for US refineries," Dallas Business Journal , 5 June 2014.
  20. ↑ Ed Crooks, US oil refiners face battle to prolong halcyon days Financial Times August 17, 2014
  21. ↑ Competitiveness of European refining 6th Oil Forum of the Energy Community September 30, 2014
  22. ↑ Tara Patel, French refineries at risk as demand weakens, industry lobby says Bloomberg News March 10, 2015
  23. ↑ Janofsky, Michael (October 10, 2004). "E.P.A. Cuts Pollution Levels With Refinery Settlements". New York Times. Retrieved 13 July 2020.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.