Tough times for US refiners
Falling gasoline demand and price volatility have significantly reduced profits in the US refining sector
The cyclical nature of the US refining industry became painfully apparent in third-quarter 2008 as refineries saw their fortunes reverse. After four years of strong growth, profit margins shrank and, at times, disappeared altogether as gasoline demand fell. More disturbing is the prospect that this drop in demand is not an anomaly, but a trend. The industry's response has been mixed. Some refiners have cut or altered production runs, while others have cancelled or postponed growth projects. Others are pushing ahead with expansion plans or upgrading existing facilities to produce higher-margin products, or process lower-quality, less-expensive crudes. Although no new refinery has been built i
Also in this section
16 April 2026
Demand for oil is falling because supply cannot meet it, not because it is no longer required
16 April 2026
The continent has an immediate opportunity to make the most of its energy resources by capturing gas that is currently slipping away
15 April 2026
The continent is seeing political pushback to climate plans, corporate reassessment of transition goals and rising supply risk in a fractured global order
15 April 2026
The Middle East energy crisis may turn out to be pivotal to the industry’s long-term expansion, but significant challenges still stand in its way
