Reported 9 days ago
US refiners are hesitant to significantly invest in processing more domestic oil due to the substantial costs and lengthy process involved in modifying refineries for lighter grades of crude. Over 70% of US processing capacity is tailored for heavier crude, primarily from Canada and Mexico. As US oil output is expected to plateau by the end of the decade, refiners are prioritizing short-term market fluctuations and have already begun shutting down operations instead of undergoing costly reconfigurations.
Source: YAHOO