California’s refining capacity continues to fall

The number of refineries operating in California has fallen from 23 in 2000 to 14 at the beginning of 2024, according to the latest data from U.S. EIA. The number of refineries is expected to drop to 11 by the end of 2026 as one refinery was converted to renewable fuels in mid-2024, and two additional large-scale refineries (>100 kb/d capacity) are planned to close in 2025-26. Of the 11 remaining refineries, only five are large-scale and produce substantial quantities of transportation fuels. Companies have cited rising regulatory compliance costs and weak refining margins as contributing factors for the closures.