US refining makes a comeback
The sector struggled to offset crushing demand losses in 2020, but recent M&A shows momentum change
Returning demand is welcome news for US refiners. Demand for refined products was hit hard by the pandemic, only to be dealt a further blow in February as Storm Uri caused widespread outages on the US Gulf Coast. However, the outlook is brighter in the short term—even as the energy transition implies more uncertainty longer term. According to the EIA, US refinery runs declined by 2.7mn bl/d—or 18pc—in the week up to 19 February. Over the whole of February, US refinery utilisation was down to 70.8pc—a level not seen since April 2020—from 82.5pc recorded in January 2021. This was also reflected in US refiners’ quarterly results. Phillips 66 and Valero Energy were among those to report first-qu
Also in this section
3 May 2024
Upcoming elections are likely to deliver a win for the party of president Andres Lopez Obrador, but analysts differ over to what degree his successor will stick to his energy policies
2 May 2024
Faster-than-expected economic growth fails to mask macro imbalances and shifting structural oil product trends
1 May 2024
Energean CEO Mathios Rigas looks to results of critical Anchois appraisal well
30 April 2024
While its regional neighbours reap the rewards of oil and gas success, Iraq’s hydrocarbons sector is lagging behind