US refining capacity decreased during 2025 to stand at 18.2 million barrels per calendar day (b/cd) on January 1, 2026, according to the US Energy Information Administration (EIA). This decline represents a drop of over 250,000 b/cd, or about 1%, compared with the prior year.
Major Refinery Closures Drive Decline
The contraction comes amid high-profile plant shutdowns on both the West and Gulf coasts. The EIA report states that LyondellBasell ended refining operations at its 263,776 b/cd refinery in Houston in March 2025. Phillips 66 ceased operations at its 138,700 b/cd refinery in Los Angeles in October 2025. Combined, these two closures represent a reduction in operable US refinery capacity of about 400,000 b/d.
However, the total national contraction stopped at 250,000 b/cd because minor capacity increases at other existing refineries partially offset the losses. The latest EIA report includes 130 operable refineries, down by two facilities compared to 2025.
Regional Impact Varies Significantly
The impact of these closures varies by region. The shutdown of the Phillips 66 facility in Los Angeles marks a 5% reduction in refinery capacity on the West Coast. According to the EIA, relatively little pipeline capacity exists to supply petroleum products from large refinery hubs on the US Gulf Coast to the West Coast. The agency noted that reductions in refinery capacity on the West Coast can have a larger impact on fuel availability in that region compared with other parts of the United States.
Further changes occurred after the formal reporting period ended. Valero's 145,000 b/d Benicia refinery was still operational on January 1, 2026, and included in the initial data. However, that facility subsequently ceased refining operations, and its capacity was removed from monthly capacity estimates as of March 2026.
Gulf Coast Absorbs Closure with Less Disruption
In contrast, the Gulf Coast region absorbed its respective closure with less disruption. The LyondellBasell Houston refinery had greater distillation capacity, but its closure represented a reduction of only 3% of regional refinery capacity on the US Gulf Coast, a region where more fuel is produced than consumed. Boosted by minor expansions at nearby sites, the overall Gulf Coast regional capacity decreased by less than 2% during 2025.
Shifts in Refiner Rankings
Company rankings adjusted slightly due to these structural shifts. The three largest domestic refiners—Marathon, Valero, and ExxonMobil—all logged calendar day capacity gains of less than 1%, likely stemming from small-scale process improvements rather than major capacity expansions. Phillips 66 dropped in total capacity due to its California shutdown, while marginal gains allowed Chevron to overtake PBF Energy as the fifth-largest domestic refiner. Motiva's Port Arthur facility remains the largest single US refinery on a calendar-day basis at 656,000 b/cd.
