WASHINGTON -- The National Petrochemical & Refiners Association (NPRA) has published its annual U.S. Refining & Storage Capacity Report. The report contains data supplied by the U.S. Department of Energy (DOE) on the crude oil capacity of U.S. petroleum refiners as of Jan. 1, 2005.
As of January 1, there were 148 operable refineries in the U.S. (excluding Puerto Rico and the Virgin Islands) with a total crude distillation capacity of 17.1 million barrels per calendar day (BPCD). Although the number of operable refineries decreased in 2004, U.[image-nocss] S. crude-oil refining capacity grew by 231,000 BPCD (+1.4%) in 2004. The capacity increase is the largest since 1999, but still less than the industry average for the years 1993 through 2003 when operating refineries added about 1.5% per year (excluding refineries that were shut down). Capacity increases since 1999 are averaging less than 1% per year.
"Domestic refining capacity remains a scarce asset," said Bob Slaughter, NPRA president. "The number of U.S. 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.
He added, "We urge policymakers to recognize the importance of U.S. refining capacity and pass a supply-focused national energy policy to ensure a robust, diverse refining industry which remains critical to national security and economic health. 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."
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.
NPRA is a national trade association with more than 450 company members, including virtually all U.S. refiners and petrochemical manufacturers.
Click here to view the full report.
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