U.S. Refinery Capacity Fell During 2025
Total operable U.S. refinery capacity dropped to 18.16 million barrels per day by early 2026.
Updated on Oct. 4, 2026 in Oil and Gas
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U.S. operable refinery capacity decreased by 263,000 barrels per day in 2025, falling from 18.42 million to 18.16 million barrels per calendar day. This shift followed the closure of major facilities in Houston and Los Angeles.
Why it matters
The reduction in domestic refining capacity reflects the consolidation of energy infrastructure, as specific plant closures were only partially offset by capacity additions elsewhere.
Total refinery capacity fell by 263,000 barrels per day throughout 2025, driven by the removal of 402,000 barrels per day via closures. Average daily U.S. crude imports stood at 6.2 million barrels, with net imports at 2.2 million barrels.
The players
LyondellBasell
This multinational chemical and fuel company operates large-scale refining and plastics manufacturing facilities globally.
Phillips 66
This diversified energy company specializes in the midstream and downstream sectors of the oil and gas industry.
The details
LyondellBasell ceased crude processing at its 263,776-barrel-per-day Houston refinery in Q1 2025, while Phillips 66 stopped operations at its 138,700-barrel-per-day facility in Los Angeles in October 2025.
Timeline
LyondellBasell stopped processing crude in Houston during Q1 2025.
Phillips 66 ceased operations in Los Angeles in October 2025.
Total U.S. refinery capacity saw a net decrease throughout 2025.
Operable capacity stood at 18.16 million barrels daily on Jan. 1, 2026.
Market Landscape
The closure of these major refineries marks a continuation of long-term downstream consolidation within the domestic energy sector. These moves highlight a shift where aging or less efficient infrastructure is retired in favor of larger, more centralized regional hubs.
Consumers may experience fluctuations in fuel availability or retail pricing as the domestic refining industry adjusts to lower overall capacity. These structural changes to the energy supply chain can influence regional gasoline costs and market volatility.
The takeaway
The decrease in refinery capacity underscores the changing footprint of American energy production. Investors and consumers should monitor domestic output levels as the industry continues to rebalance its regional infrastructure.
Further reading
For broader context on energy infrastructure, explore the Oil and Gas section.
Source note: This article includes information reported by TokenPost.
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