U.S. Refineries Prepare for Maintenance Ahead of a Busy 2026

Written by Will Ploch, Assistant Editor-in-Chief for IIR News (Sugar Land, Texas)

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Summary

U.S. refinery utilization is expected to be high in 2026, given refinery closures and a lighter first-quarter maintenance schedule.

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More Closures Mean More Business

Next year is expected to be a busy one for the U.S. Petroleum Refining Industry, with high utilization rates at operational units resulting from the recent closures of several key refineries, according to the U.S. Energy Information Administration (EIA). Several of the industry's biggest players are preparing for turnarounds in the coming quarter at some of their largest units. Industrial Info is tracking $1.1 billion worth of maintenance-related projects at U.S.-based refineries that are set to begin in the first quarter, nearly half of which is attributed to Exxon Mobil Corporation (Spring, Texas), Marathon Petroleum Corporation (Findlay, Ohio) or Valero Energy Corporation (San Antonio, Texas).

The number of turnarounds in first-quarter 2026 is expected to be smaller when compared with same period in previous years, due in part to a relatively heavy turnaround season in the autumn of 2025. Executives at ExxonMobil are preparing for relatively light scheduled maintenance in the coming quarter and, as a result, stronger refinery throughput and utilization rates.

For first-quarter 2026, ExxonMobil is planning a series of turnarounds at some of its major facilities along the Gulf Coast, including a pair of units at its two largest refineries: the 180,000-barrel-per-day (BBL/d) Crude Unit A at the Beaumont Refinery, and the 108,000-BBL/d Crude Pipe Still 3 at the Baytown Refinery. The projects differ in length, with the Baytown turnaround not expected to wrap up until April.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Project and Plant databases can learn more about these turnarounds--including investment values, schedules and necessary equipment--from a detailed reports on the Beaumont and Baytown projects, and profiles of the Beaumont and Baytown refineries.

"We have seen capacity coming offline and supply disruptions around the world," said Darren Woods, the chief executive officer of ExxonMobil, in the company's most recent earnings-related conference call. "That is tightening the product side of the equation, the supply-demand balance. So we see prices going up. That has benefited the refining industry as a whole."

Woods' comments reflected similar findings by Marathon Petroleum. "Fourth-quarter refining cracks have started out stronger than seasonal averages," said Maryann Mannen, the chief executive officer of Marathon, in an earnings call. "Current fundamentals highlight the market tightness and support our enhanced mid-cycle outlook into 2026."

California Refiners Busier After Phillips 66 Exits

Marathon executives highlighted work at the company's Los Angeles Refinery, which one called "the largest, most dynamic, complex, efficient refinery in the California region." Marathon is preparing for a turnaround on its 38,000-BBL/d Cat Feed Hydrotreater Unit 4 in the first quarter, as well as one on its 103,000-BBL/d crude and vacuum unit, following roughly $100 million of investment in the complex in 2025. Subscribers can learn more from detailed reports on the hydrotreater and vacuum projects, and a plant profile.

Marathon's Los Angeles Refinery will have its work cut out for it, as Phillips 66 (Houston) is in the process of shutting down its refinery in Wilmington, California, by the end of 2025, which processed 138,000 BBL/d. Other California refineries preparing for turnarounds in the first quarter include San Joaquin Refining Company Incorporated's refinery in Bakersfield, which is performing routine inspections and repairs to its 24,300-BBL/d crude unit, 14,000-BBL/d vacuum unit, 3,000-BBL/d diesel hydrotreater and 2,000-BBL/d lube oil hydrotreater.

Subscribers can learn more about these developments from profiles of the Wilmington and Bakersfield refineries, and detailed reports on the Wilmington closure and Bakersfield's turnarounds on its crude and vacuum units and diesel and lube oil hydrotreaters.

"Refining margins remained well supported by strong global demand and persistently low inventory levels, despite high utilization rates," said Lane Riggs, the chief executive officer of Valero, in the company's most recent earnings-related conference call. "Looking ahead, refining fundamentals should remain supported by low inventories and continued supply tightness with planned refinery closures and limited capacity additions beyond 2025."

U.S. gasoline and distillate inventories are relatively low, considering pandemic and pre-pandemic levels, according to Hillary Stevenson, Vice President of Energy Intelligence for IIR Energy. On the other hand, global crude inventories are expected to rise through 2026, putting a downward pressure on crude prices.

Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Subscribers can click here for a full list of reports for maintenance-related projects at U.S.-based refineries that are set to begin in the first quarter.

Key Takeaways

• The U.S. Petroleum Refining Industry is bracing for higher utilization rates in 2026.
• Closures of several key refineries, including Phillips 66's facility in California, is driving business at others.
• The number of turnarounds in early 2026 is expected to be smaller when compared with same period in previous years.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).