Manufacturing & The Economy
Despite the decline in U.S. domestic product demand, the country’s refining utilization levels have increased significantly in the last few years, as foreign requests for U.S. products have grown by approximately 70% since 2009, says an analyst with research and consulting firm GlobalData.
According to Carmine Rositano, GlobalData's Managing Analyst covering Downstream Oil & Gas, the U.S. refining utilization averaged around 83% in 2009, increasing to approximately 89% in 2013. A 1% growth translates into 175 thousand barrels per day (mbd), meaning that America’s 6% increase in refining utilization results in one million barrels per day (mmbd) of higher refining runs, the analyst says.
Rositano continues: “Since there is minimal, if any, increase in U.S. oil demand expected over the next few years, keeping product export levels high and maintaining growth is key to the financial health of America’s refining industry.”