Changes in Petroleum Demand Lead to Operational Adjustments at U.S. Refineries: EIA

U.S. petroleum refineries significantly altered operations in response to plummeting demand for motor gasoline and jet fuel, both of which have fallen to near-all-time lows because of efforts to mitigate the COVID 19 pandemic, according to an Aug. 28 report from the U.S. Energy Information Administration.

Beginning in April, refiners responded to less demand for transportation fuels by decreasing overall refinery runs, which were 22 percent lower in April 2020 compared with the full year 2019 average of 17.0 million barrels per day. In May, inputs to distillation units were similar, at 21 percent lower than the 2019 average.

These reductions largely resembled the overall declines in demand for finished petroleum products in those months, as measured by product supplied. These three products generally have the highest yield percentages from refineries. In 2019, refinery yields for motor gasoline averaged 46 percent; distillate fuel oil, 30 percent; and jet fuel, 10 percent. Refinery yields reflect the volumetric ratio of a finished product to refineries total inputs of crude oil and net inputs of unfinished oils.

In April, refinery yields for motor gasoline and jet fuel fell to 41 percent and 5 percent, respectively, the lowest since 1993. However, distillate fuel oil yields rose to 38 percent, the highest on record. Refineries have the ability to change their petroleum product output by operating downstream units that process the output from distillation units. Among the four types of downstream units, catalytic crackers, which are associated with more gasoline production, were operated less compared to the other three – catalytic reformers, catalytic hydrocrackers, and cokers.