Companies in this industry refine crude oil to produce fuel and other products. Major companies include Chevron, Exxon Mobil, and Valero (all headquartered in the US); BP (the UK); and Royal Dutch Shell (the Netherlands).
Worldwide, the petroleum refining industry processes about 82 million barrels of crude oil each day, including about 17 million barrels per day refined in the US, according to the 2018 BP Statistical Review of World Energy. The countries with the largest refining throughput are the US, China, Russia, India, Japan, and South Korea. China, India, and the Middle East are expected to account for most of the refinery capacity expansions over the next several years.
The US has about 135 petroleum refineries, owned by about 50 companies. The industry has annual revenue of about $400 billion. Variations in the price of crude oil can cause revenue to fluctuate significantly.
Demand is driven by consumption of gas and diesel fuel. The profitability of refineries depends on feedstock prices, efficient operations and the best mixture of products. Although there are significant economies of scale in refinery operations, a small refinery can compete effectively with large ones if it's located in a favorable market area, or if it produces specialty products that are in high demand. The US industry is highly concentrated: the eight largest companies account for about 70% of revenue.
Imports of refined petroleum products account for about 15% of the US market. Major sources of refined products are Canada, Russia, South Korea, the UK, and India. Major export markets for US refined petroleum products include Mexico, Canada, Brazil, the Netherlands, and Chile. Exports account for about 20% of US production.
Products, Operations & Technology
Major products are gasoline (about 50% of production), diesel fuel and heating oil (30%), and jet fuel (10%). Other products include petroleum coke, still
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms