The United States Faces an Imminent Fuel Supply Crisis Due to Insufficient Refining Capacity for Gasoline, Diesel, and Jet Fuel

As America’s fleet of domestic refineries dwindles, it finds itself responsible for a larger portion of the global gasoline and diesel production, paving the way for an impending shortage.

From soaring gasoline prices to escalated airfares and concerns over potential diesel rationing, the energy market’s turbulence in the US is unsettling both domestic travelers and the broader economy. However, the primary catalyst behind this turmoil isn’t solely attributed to surging crude prices or the resurgence in demand; rather, it’s the inadequacy of refineries in converting oil into essential fuels.

Since the onset of the pandemic, over 1 million barrels per day of the nation’s oil refining capacity — approximately 5% of the total capacity — has been shuttered. Turner, Mason & Co., an energy consultancy, estimates that globally, an additional 2.13 million barrels per day of capacity have vanished. Despite refiners enjoying unprecedented profits, there are no imminent plans to inaugurate new plants in the US. Consequently, the strain on the supply chain is poised to exacerbate further.