Since 2019, the US has lost over 1 million barrels per day of oil refining capacity, according to Energy Intelligence. On top of this, 2023 will see an additional loss of 268,000 barrels per day refining capacity with the closure of the LyondellBasell refinery in Houston, TX. Loss of oil refining capacity translates directly into greater scarcity of fuel distillates, which exerts upward pressure on retail fuel prices.

But, there is good news as well. In 2023 there will be a combined 505,000 barrel per day uptick in refinery capacity according to Energy Intelligence. ExxonMobil will see an increase in capacity at its Beaumont, TX, refinery. Valero Energy will be adding two coker and sulfur recovery trains to increase their heavy sour crude oil throughput to provide a 55,000 barrel per day increase in fuels output at their Port Arthur, TX, plant.

The controversial Limetree Bay refinery in St. Croix in the US Virgin Islands, now owned by West Indies Petroleum Limited and Port Hamilton Refining and Transportation, LLLP, is scheduled to reopen, but information is scarce. Formerly the Hovensa facility, a joint venture of Hess Corp. and Petroleos de Venezuela SA, this refinery processed Libyan and Venezuelan crude and has supplied much of the US gulf coast. According to Energy Intelligence, the refinery is thought to be able to restart and produce 200,000 barrels per day. However, the former Hovensa facility has a recent history of losses, Clean Air Act violations and a bankruptcy sale. It doesn’t sound like the situation has fully played out yet.