U.S. operable refining capacity totaled 18.2 million barrels per calendar day as of January 1, 2026, down more than 250,000 barrels a day, or about 1%, from a year earlier, according to the Energy Information Administration's latest annual Refinery Capacity Report, cited by Inspectioneering.

The decline reflects the closure of two refineries during 2025: LyondellBasell's 263,776 barrel-per-day Houston facility, which ended operations in March 2025, and Phillips 66's 138,700 barrel-per-day Los Angeles refinery, which closed in October 2025. Combined, the two closures removed roughly 400,000 barrels a day of capacity from the national refining system, a loss partly offset by marginal capacity increases at other operating refineries. This year's report counts 130 operable U.S. refineries, two fewer than in 2025.

The Phillips 66 Los Angeles closure alone cut West Coast refining capacity by about 5%, a region with limited pipeline connections to Gulf Coast supply, which EIA says can amplify fuel price swings there. Valero's 145,000 barrel-per-day Benicia refinery was still listed as operational in the report but has since ceased refining and was removed from EIA's monthly estimates in March 2026, pointing to further West Coast capacity loss ahead. Gulf Coast capacity, which includes the top exporting refineries, fell by less than 2% for the year even after the larger LyondellBasell closure, because that region produces more fuel than it consumes.

Motiva's Port Arthur, Texas, refinery remains the largest in the country at 656,000 barrels per calendar day, while Marathon's Galveston Bay facility leads on a stream-day basis.

Source: Inspectioneering (U.S. Energy Information Administration) - https://inspectioneering.com/news/2026-06-29/12104/us-refining-capacity-decreased-in-2025