US crude oil refining grows in 2004
Jul 12, 2005 12:06 PM
Although the number of operable refineries decreased in the United States in 2004, crude oil refining capacity grew 1.4 percent, according to a publication recently released by the National Petrochemical and Refiners Association. The capacity increase is the largest since 1999, but still less than the industry average for the years 1993 through 2003.
“Domestic refining capacity remains a scarce asset,” said Bob Slaughter, NPRA president. “The number of US refineries continues to decline with minimal increases in domestic capacity. But we are starting to see more capacity additions, particularly now that we’re clarifying the New Source Review requirements, and also because the economics of the industry have been better the last two years. More than ever, we need an updated energy policy that balances environmental initiatives affecting fuels with energy supply security requirements.
Unless policies change, future capacity increases will not keep pace with increasing demand for petroleum products. This means that product imports will grow and perhaps in time compromise national energy security in much the same way that the nation’s dependence on crude imports already does.”
Capacity increases since 1999 are averaging less than 1% per year. As of January 1, 2005, there were 148 operable refineries in the United States, excluding Puerto Rico and the Virgin Islands, with a total crude distillation capacity of 17.1 million barrels per calendar day (BPCD).
The report also includes statistics on shutdown and reactivated refineries and refinery sales during 2004. The increase in capacity in 2004 occurred entirely in existing refineries. In 2004, one refinery with a total capacity of 5,400 BPCD was shut down. There were no reactivations in 2004.
In 2003, there were no shutdowns or reactivations.
In 2004, four refineries were sold with a total capacity of 642,000 BPCD compared to eight refineries with a total capacity of 552,200 BPCD sold in 2003.
The report is available electronically at no charge on the NPRA web site npra.org.
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