US Refinery Capacity Declines by 1% in 2025 Amid Two Plant Closures
US refinery capacity declined by about 1% in 2025, falling to 18.2 million barrels per day as of January 1, 2026, according to the US Energy Information Administration. This reduction reflects the closure of two refineries: LyondellBasell's Houston plant and Phillips 66's Los Angeles facility, together reducing capacity by approximately 400,000 barrels per day. However, minor capacity increases at other refineries partially offset this loss, resulting in a net decline of 250,000 barrels per day. The Phillips 66 closure notably reduced West Coast refinery capacity by 5%, impacting regional supply dynamics.