The United States saw total refining capacity decline by 263,000 barrels per day in 2025, a fall of 1.43% from the prior year, according to a report published by the U.S. Energy Information Administration on Friday. The agency attributed the reduction to the planned conversion of a large Houston refinery and the shutdown of a Los Angeles-area facility.
The EIA based its figures on capacity submissions from individual refineries made to the agency as of January 1, 2026. The report underscores how facility-level decisions - including conversions and closures - feed into national capacity totals in a given year.
Marathon Petroleum of Findlay, Ohio, continues to top the list of U.S. refiners, with capacity of 2.986 million barrels per day, representing 16.4% of the country's total, the EIA data show. Valero Energy Corp, headquartered in San Antonio, holds the second-largest position with capacity of 2.23 million barrels per day, or roughly 12% of U.S. refining capability.
Separately, the Motiva Enterprises refinery in Port Arthur, Texas - owned by Saudi Aramco - remains the largest single refinery in the United States, with capacity listed at 656,400 barrels per day. The Port Arthur complex increased its capacity by 15,900 barrels per day through improved refining efficiency, according to the EIA figures.
The report highlights specific company actions that contributed to the 2025 reduction. Chemical manufacturer Lyondell Basell Industries closed its Houston refinery, with capacity noted as 263,776 barrels per day, in February 2025 to repurpose the site into a petrochemical plant. The company said the refinery no longer aligned with its strategy as a global chemical producer.
In addition, Phillips 66 shut down a Los Angeles-area refinery with capacity of 138,700 barrels per day in October 2025, citing uncertain viability amid evolving market dynamics in California. The EIA notes that refinery capacities can fluctuate year to year and that capacity totals often recover when facilities enhance operating efficiency.
Because the EIA's numbers rely on facility-reported capacity as of the submitted cutoff date, year-to-year comparisons reflect both operational changes and corporate decisions to convert or shutter sites. The agency's release does not project future capacity trends but documents the net change recorded for the 2025 reporting period.