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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. refinery utilization will remain at above 90% over the next two years as the industry returns to more normal rates after low refinery utilization in 2020 and 2021, according to the U.S. Energy Information Administration's (EIA) February Short-Term Energy Outlook (STEO).
"We forecast U.S. refinery utilization will average 90.8% in 2023 and then decrease slightly to 90.3% in 2024," the EIA said in its Monday Today in Energy report.
"In 2020, average refinery utilization dropped to 78.8%, the lowest annual rate since we began collecting this data in 1997, but by 2022, utilization rates averaged closer to pre-pandemic levels at more than 91%."
The EIA went on to say it expected slower economic growth in 2023 and 2024, which would reduce gasoline and diesel consumption compared with 2022, leading to a gradual decrease in petroleum product prices.
"We also forecast that increased production of finished petroleum products as a result of high refinery utilization rates will contribute to lower prices," the EIA continued. "The ban on imports of refined petroleum products from Russia into the EU, which began earlier this month, poses a risk of additional disruptions and brings significant uncertainty to our forecast."
For 2023 and 2024, Industrial Info is tracking nearly $3.2 billion worth of refinery turnaround kickoffs in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for the list of project reports.
Speaking at Industrial Info's 2023 North American Industrial Market Outlook in January, Hillary Stevenson, an oil market subject matter expert and correspondent for IIR Energy, said refineries had a big year in maintenance in 2022, with large numbers of turnarounds in both the fall and spring. This year, there will be a large number of turnarounds in the spring, but not so many in the fall.
Some of the more substantial turnarounds planned this year include those at:
"We forecast U.S. refinery utilization will average 90.8% in 2023 and then decrease slightly to 90.3% in 2024," the EIA said in its Monday Today in Energy report.
"In 2020, average refinery utilization dropped to 78.8%, the lowest annual rate since we began collecting this data in 1997, but by 2022, utilization rates averaged closer to pre-pandemic levels at more than 91%."
The EIA went on to say it expected slower economic growth in 2023 and 2024, which would reduce gasoline and diesel consumption compared with 2022, leading to a gradual decrease in petroleum product prices.
"We also forecast that increased production of finished petroleum products as a result of high refinery utilization rates will contribute to lower prices," the EIA continued. "The ban on imports of refined petroleum products from Russia into the EU, which began earlier this month, poses a risk of additional disruptions and brings significant uncertainty to our forecast."
For 2023 and 2024, Industrial Info is tracking nearly $3.2 billion worth of refinery turnaround kickoffs in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project Database can click here for the list of project reports.
Speaking at Industrial Info's 2023 North American Industrial Market Outlook in January, Hillary Stevenson, an oil market subject matter expert and correspondent for IIR Energy, said refineries had a big year in maintenance in 2022, with large numbers of turnarounds in both the fall and spring. This year, there will be a large number of turnarounds in the spring, but not so many in the fall.
Some of the more substantial turnarounds planned this year include those at:
- Delta Airlines Incorporated's (Atlanta, Georgia) 185,000-barrel-per-day (BBL/d) Trainer Refinery in Trainer Pennsylvania. The turnaround is planned for third-quarter 2023. Subscribers can click here for the project report.
- Phillips 66's (NYSE:PSX) (Houston, Texas) 260,000-BBL/d Lake Charles Refinery in Westlake, Louisiana, planned for third-quarter 2023. Click here for the project report.
- Phillips 66's Bayway Refinery first-quarter 2023 Fluid Catalytic Converter Unit (FCCU) and Sulfuric Alkylation (SF Alky) Unit in Linden, New Jersey. Click here for more information.
- CVR Energy Incorporated's (NYSE:CVR) (Sugar Land, Texas) 135,000-BBL/d Coffeyville Refinery in Coffeyville, Kansas, in first-quarter 2024. Click here for more information.
- Par Pacific Holdings Incorporated's (NYSE:PARR) (Houston) 90,000-BBL/d Par East Refinery in Kapolei, Hawaii, planned for third-quarter 2024. Subscribers can click here for the project report.
- Marathon Petroleum Corporation's (NYSE:MPC) 71,000-BBL/d Mandan Refinery in Mandan, North Dakota, planned for second-quarter 2024. Click here for more information.
