![]() What’s expected: Bodies like EIA and the International Energy Agency predict oil demand will continue to be strong for years to come, despite the overwhelming momentum behind green policies to shift toward electric vehicles and renewable energy. East Coast and Gulf Coast refineries are running at 97%. ![]() refineries operated at 93.2% of their capacity last week, according to the Energy Information Administration. With demand high again, the operative refineries are being highly utilized. due to a mix of factors, including the pandemic’s destruction of fuel demand (and the 2019 explosion of the Philadelphia Energy Solutions refinery in Pennsylvania, which removed 335,000 bpd of capacity). Nearly a third of that capacity, 1.1 million barrels worth, was shed in the U.S. The globe has lost around 3 million barrels per day worth of refining capacity in the last few years. The numbers: Oil demand has recovered significantly from its pandemic lows, but it’s done so in a world with much less refining capacity than it had in 2019. “They’ve quickly realized that refining capacity is the issue right now, and they’re trying to understand the factors behind the closures and why in the current margin environment, it doesn't look like capacity will come back online,” the source told Jeremy. REFINERIES GETTING A CLOSER LOOK: The White House, seeking to lower record fuel prices, has turned its eye to the nation’s refining capacity shortage, something oil industry players have been offering as an alternative for explaining current price hikes against Democrats’ gouging allegations.Ī source confirmed that the White House is reaching out to refiners about issues facing the industry, as Bloomberg reported yesterday, although they said the conversation with administration officials reflected more a fact-finding mission than one premised on restarting closed refineries. ![]() ![]() Subscribe today to the Washington Examiner magazine and get Washington Briefing: politics and policy stories that will keep you up to date with what's going on in Washington. ![]()
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