US Refiners Push Plants to Maximum Levels Amid Strong Demand
US oil refiners are pushing their plants to maximum levels, running them harder than usual in response to strong profits and steady demand for fuels. According to Energy Aspects, the industry has had one of its lightest maintenance seasons in years, with an average shutdown of only 470,000 barrels a day from January through May.
This is a significant decrease from previous years, when the same period saw 700,000 and 900,000 barrels shut down annually. Motiva Enterprises LLC has even delayed a major maintenance project at its Port Arthur refinery on the Texas Gulf Coast by about a year to take advantage of strong product margins.
Raul Calzada, a refining analyst at Energy Aspects's Houston office, notes that 'demand for refined products is going to be high, so the market needs refiners to run hard the rest of the year.' However, he also warns that postponing maintenance increases the risk of unexpected breakdowns.
The US refining industry is revving up in response not only to domestic demand but also to American exports of diesel and jet fuel staying robust. The effective closure of the Strait of Hormuz continues to disrupt global energy flows, making it difficult for Asian refiners to get the crude they need for fuel production.