U.S. refineries lost more than 250,000 barrels per calendar day of operable capacity in 2025, a decline of roughly 1% that brought total nationwide atmospheric distillation capacity down to 18.2 million barrels per calendar day as of January 1, 2026, according to the U.S. Energy Information Administration's annual Refinery Capacity Report.

The drop stemmed largely from two major closures. LyondellBasell shut down its 263,776 barrel-per-day refinery in Houston in March 2025, and Phillips 66 ceased operations at its 138,700 barrel-per-day Los Angeles facility that October. Combined, the two shutdowns removed close to 400,000 barrels per day of processing capacity from the national total, an amount only partially offset by small capacity increases elsewhere in the system. This year's report counts 130 operable U.S. refineries, two fewer than the prior year.

The impact fell unevenly by region. The Phillips 66 Los Angeles closure alone cut West Coast refining capacity by 5%, a significant hit for a region with limited pipeline connections to the larger refining hubs on the Gulf Coast. That regional isolation means further West Coast supply disruptions could have an outsized effect on local fuel availability. Valero's 145,000 barrel-per-day Benicia refinery in the Bay Area also ceased refining operations and was removed from EIA's monthly capacity estimates as of March 2026, though it was still counted as operable when the annual report's January 1 snapshot was taken.

On the Gulf Coast, where refiners typically produce more fuel than the region consumes, the loss of the Houston plant represented just 3% of regional capacity, and overall Gulf Coast capacity fell less than 2% for the year after accounting for gains at other refineries.

Source: U.S. Energy Information Administration -- https://www.eia.gov/todayinenergy/detail.php?id=67807