As several refineries in 2020 in the U.S were shut due to the lockdowns, the atmospheric crude oil distillation capacity of the U.S decreased by 4.5%.
The Refinery capacity dropped to 18.1 million barrels per calendar in January 2021. By the end of 2020, the capacity of the Refinery decreased to is 0.8 million barrels per calendar, far less than 19.0 million b/cd during the start of 2020. According to reports, the capacity of the refining at the beginning of 2021 is marked to be the lowest not recorded since 2015. The reports say the oil refining capacity of the U.S will not be expanded in 2021.
At the start of 2021, among all the 135 refineries that were listed to be operable in 2020 in the U.S, 129 refineries were not operating or carried out no operations.Most importantly, the closures of the additional refineries give a large setback to the U.S oil sector. In 2019, a huge Refinery in Philadelphia named Philadelphia Energy Solutions (PES) faced a major incident. Since then, it is not in operation.
The refiner had a capacity of 335,000 b/cd. In the 2020 Refinery Capacity Report, the is listed idle. The decision to permanently halt the operations of the facility is still on hold, which is why it is listed idle in the report. In the previous year, the pandemic largely impacted the demand for motor fuels and petroleum products. This made the market situation more challenging and pressure on the margins.