US oil refiners expand capacity following a dip during pandemic - Greater Baton Rouge Business Report
US oil refiners expand capacity following a dip during pandemic
U.S. crude oil refining capacity has reversed two years of declines and climbed by more than 100,000 barrels per day, to 18.1 million, according to a government report released last week, reports Reuters.
During the first two years of the COVID-19 pandemic, processing capacity to produce gasoline, diesel and jet fuel fell 5.4% as lockdowns and work-from-home policies crushed motor fuel demand.
When gasoline and diesel demand rebounded last year, diminished capacity resulted in sky-high fuel prices and record profits for the industry. In November, U.S. President Joe Biden accused oil companies of profiteering and called on refiners to cut prices and reinvest profits in new output. Read the entire story.
This story was first published in 10/12 Industry Report’s free, weekly e-newsletter covering south Louisiana industry news.
Related Knowledge Center: ENERGY BASICS: petroleum
While electric-powered vehicles may be the ride of the future, oil remains at least for now the dominant fuel for transportation around the world. And after a period of time at the end of the 20th century when oil was subject to wide fluctuations in price, new supplies in North America as a result of non-conventional recovery techniques have helped stabilize prices.