US Oil and Gas Refining Industry Market Research Report By Complexity Type (Topping, Hydro-Skimming, Conversion, Deep Conversion), By Product Type (Light Distillates, Middle Distillates, Fuel Oil, Others), By Fuel Type (Gasoline, Gasoil, Kerosene, LPG, Others) and By Application (Transportation, Aviation, Marine Bunker, Petrochemical, Residential & Commercial, Agriculture, Electricity, Rail & Domestic Waterways, Others) - Forecast to 2035

US Oil and Gas Refining Industry Market Overview:

As per MRFR analysis, the US Oil and Gas Refining Industry Market Size was estimated at 321.82 (USD Billion) in 2023. The US Oil and Gas Refining Industry Market Industry is expected to grow from 380(USD Billion) in 2024 to 650 (USD Billion) by 2035. The US Oil and Gas Refining Industry Market CAGR (growth rate) is expected to be around 5.001% during the forecast period (2025 - 2035).

Key US Oil and Gas Refining Industry Market Trends Highlighted

The US oil and gas refining industry is currently experiencing a notable shift driven by several key market drivers. The increasing demand for cleaner fuels has prompted refiners to invest significantly in technologies that reduce emissions and enhance energy efficiency. As the US government emphasizes energy independence and environmental sustainability, these drivers are shaping the industry's operational landscape. Furthermore, the trend toward the integration of renewable energy sources into the refining process has gained traction, encouraging the exploration of biofuels and biorefining methods. In recent times, the US refining sector has also seen an opportunity to capitalize on the rising demand for petrochemical feedstocks, as the shift towards lighter hydrocarbons becomes more pronounced.

This has led to a strategic focus on optimizing existing refineries to produce higher-value products, aligning with market demands. Additionally, the push for resilient supply chains amidst global uncertainties has shown refiners reevaluating their logistics and distribution networks to improve efficiency and minimize disruptions caused by geopolitical factors. The ongoing technological advancements, such as digitalization and automation, are transforming aspects of operations, providing refiners with tools to enhance performance and cut operational costs. Moreover, regulatory changes continue to influence industry practices, with stricter emissions standards prompting refiners to upgrade facilities.This has created a burgeoning market for service providers and technology developers focused on compliance and efficiency solutions. Overall, the US oil and gas refining industry stands at a crossroads of tradition and innovation, navigating through challenges while positioning itself strategically for future growth.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

US Oil and Gas Refining Industry Market Drivers

Increasing Demand for Transportation Fuels

The US Oil and Gas Refining Industry Market is significantly driven by the rising demand for transportation fuels. According to the U.S. Energy Information Administration, gasoline consumption in the United States reached approximately 9.2 million barrels per day in 2021, and it is projected to continue growing as the economy expands and personal mobility increases. This upward trend is augmented by the surge in population and vehicle ownership, with the American Automobile Association reporting that the number of registered vehicles in the US was over 270 million in 2022.

The growing desire for transportation fuels not only enhances the refining sector's revenue potential but also encourages advancements in refining technologies. Major refining companies like ExxonMobil and Phillips 66 invest heavily in Research and Development to improve efficiency and production capabilities, keeping pace with this increased demand and ultimately propelling the US Oil and Gas Refining Industry Market forward.

Technological Advancements in Refining Processes

The US Oil and Gas Refining Industry Market is propelled by technological advancements that enhance refining processes. With increasing investments in automation and digitalization, refineries are achieving greater efficiency and output. The American Petroleum Institute emphasizes that implementing advanced technologies can reduce operating costs by up to 20%. Moreover, technologies such as hydrocracking and catalytic cracking have significantly improved yield rates, allowing refineries to extract more energy from crude oil. Leading companies, including Chevron and Valero, are pioneering these technologies and are actively seeking to transform their refining processes to remain competitive and compliant with stricter environmental regulations, thus driving growth in the market.

Regulatory Support and Environmental Policies

The US Oil and Gas Refining Industry Market is positively influenced by regulatory support and evolving environmental policies. The Environmental Protection Agency has introduced programs aimed at promoting cleaner fuels and lowering emissions. The Renewable Fuel Standard mandates the blending of renewable fuels with conventional gasoline and diesel, driving refineries to adopt cleaner technologies and innovate processes. This sense of regulatory urgency aligns with the Biden administration's commitment to achieving net-zero greenhouse gas emissions by 2050, significantly impacting refining operations. Refining companies are likely to invest more in sustainable practices, leading to long-term growth in the US Oil and Gas Refining Industry Market.

US Oil and Gas Refining Industry Market Segment Insights:

Oil and Gas Refining Industry Market Complexity Type Insights

The Complexity Type within the US Oil and Gas Refining Industry Market plays a crucial role in defining the refinement processes used to meet various market demands. This segment is classified into various categories including Topping, Hydro-Skimming, Conversion, and Deep Conversion. Topping refineries are known for their simplicity in operations and focus on distilling crude oil into its basic components. They serve as a foundational element in the energy landscape, allowing for the production of essential fuels and petrochemicals. Hydro-Skimming refineries take a step further by refining heavier crudes through the utilization of hydro-processing techniques, enhancing product yield and quality. This process not only improves operational efficiency but also aligns with environmental regulations by producing cleaner fuels. Conversion refineries, on the other hand, transform heavier fractions of crude into lighter and more valuable products through advanced processing methods such as cracking and hydrotreating.

This segment is significant as it enables refiners to maximize profitability by optimizing the output of high-demand products like gasoline and jet fuel. Deep Conversion refineries further enhance this sophistication by employing complex technologies that allow for the breakdown of crude into various additives and high-value chemicals. This category is increasingly important due to rising consumer demands for diverse and cleaner fuels, coupled with global sustainability initiatives. Overall, the Complexity Type segmentation is essential in strategizing production capabilities and navigating regulatory requirements within the US refining sector. As refineries adapt to fluctuating crude oil prices and the growing emphasis on sustainability, the varying complexities in each category provide a framework for optimizing operations and innovating processes.

The prominence of each type within the US Oil and Gas Refining Industry Market illustrates the ongoing evolution of refining strategies to meet changing consumer preferences and environmental standards. The dynamics in complexity also highlight the importance of technological advancements and investment in refining capabilities that can lead to improved market competitiveness and resource utilization. Understanding these subdivisions further aids industry stakeholders in making informed decisions and navigating the challenges inherent in the fast-evolving energy market landscape.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Oil and Gas Refining Industry Market Product Type Insights

The US Oil and Gas Refining Industry Market is characterized by diverse product types, each playing a critical role in meeting the demands of both domestic and international markets. Light Distillates, which typically include gasoline and jet fuel, are essential due to their high demand in transportation and aviation sectors, making this segment a significant contributor to the industry's revenue stream. Middle Distillates, encompassing diesel and heating oils, cater primarily to the commercial transport and residential heating markets, demonstrating substantial growth linked to increased freight activities and energy consumption. Fuel Oil, used mainly in marine transportation and industrial applications, remains vital for energy generation, particularly as the US transitions toward greener alternatives while still relying on traditional sources for immediate energy needs. The Others category encompasses specialty products which, though individually smaller, collectively hold importance in serving niche markets. Understanding the dynamics of these product types allows for better insights into overall market trends, growth drivers, and the strategic shifts necessary to respond to evolving consumer preferences and regulatory changes within the US.

Oil and Gas Refining Industry Market Fuel Type Insights

The Fuel Type segment of the US Oil and Gas Refining Industry Market plays a crucial role in determining the overall dynamics of the industry. Gasoline remains a leading fuel due to its widespread use in transportation, reflecting the high demand driven by consumer mobility in urban areas. Gasoil, or diesel, is pivotal for commercial and industrial sectors, underpinning logistics and transportation of goods. Kerosene serves a vital function in aviation fuel and heating applications, particularly in regions where alternative energy sources are limited.Liquefied Petroleum Gas (LPG) has gained traction as a cleaner alternative for cooking and heating, especially in households and industries seeking to reduce carbon emissions. Additionally, other fuel types also contribute to the market, addressing niche applications and growing environmental concerns. The evolving landscape of fuel preferences, along with a shift towards more sustainable energy sources, presents both challenges and opportunities for these fuel types within the US Oil and Gas Refining Industry Market. Factors such as regulatory measures, advancements in refining technology, and shifting consumer behavior are set to shape the future trajectory of each fuel type, reflecting the market’s adaptability and resilience.

Oil and Gas Refining Industry Market Application Insights

The US Oil and Gas Refining Industry Market exhibits a diverse Application segment, critical in driving the overall economy and energy landscape. This segment encompasses various applications, including Transportation, Aviation, Marine Bunker, Petrochemical, and Residential and Commercial uses. Transportation fuels, which include gasoline and diesel, play a vital role, as they support both personal and commercial mobility across the United States. The Aviation industry heavily relies on refined fuels for airlines, emphasizing the need for quality and availability, while the Marine Bunker fuels ensure efficient shipping and logistics, vital for international trade. The Petrochemical sector utilizes refined products to create essential chemicals, ranging from plastics to fertilizers, reflecting the industry's importance in manufacturing. Additionally, the Residential and Commercial segment relies on refined oil for heating, cooking, and other needs, showcasing the industry's direct impact on daily life. Agriculture applications also depend heavily on refined fuels for machinery and transportation, underscoring their role in food production. Furthermore, the Electricity sector utilizes refined products for energy generation, while Rail and Domestic Waterways enhance transportation efficiency in moving goods. Overall, these applications illustrate the essential role of the US Oil and Gas Refining Industry Market in supporting various economic sectors, fueling growth and efficiency across multiple fronts.

US Oil and Gas Refining Industry Market Key Players and Competitive Insights:

The US Oil and Gas Refining Industry Market is a dynamic and complex landscape characterized by a mix of established giants and newer entrants, along with various competitive strategies that influence market dynamics. This industry plays a crucial role in the overall energy sector of the United States, ensuring a steady supply of refined products essential for transportation, heating, and manufacturing. Key competitive insights reveal that companies within this sector focus on enhancing operational efficiency, adopting advanced technologies, and meeting regulatory standards. With evolving consumer demands and market conditions, competition intensifies, leading companies to innovate and optimize their refining processes to maintain profitability and competitive advantage. The market is shaped by fluctuating crude oil prices, the transition to renewable energy sources, and changing environmental regulations, all of which drive the strategic decisions of key players in this industry.

ExxonMobil operates as one of the leading companies in the US Oil and Gas Refining Industry Market, boasting significant market presence and a well-established infrastructure. The company has significant refining capacity that underpins its competitive edge, allowing it to process vast amounts of crude oil into a variety of refined products. ExxonMobil's strengths lie in its extensive supply chain management as well as advanced refining technologies that enhance production efficiency and reduce emissions. Moreover, the company benefits from its strong brand reputation and extensive research and development capabilities, which contribute to its ability to introduce innovative products that meet the refined product demands of the market. ExxonMobil’s strategic positioning also emphasizes its commitment to sustainability and environmental stewardship, helping it navigate the evolving regulatory landscape while maintaining operational excellence.

Marathon Petroleum stands out in the US Oil and Gas Refining Industry Market, particularly known for its robust refining capacity and a diversified portfolio of key products and services. The company has established a strategic footprint across the United States, enabling it to serve various regional markets effectively. Marathon Petroleum offers a wide range of refined products, including gasoline, diesel fuel, and jet fuel, catering to both industrial and consumer needs. The strength of Marathon Petroleum lies in its extensive refining network coupled with a strong logistics and distribution system that ensures a reliable and timely supply of products. Recent mergers and acquisitions have solidified its market presence, allowing the company to streamline operations and expand its product offerings. Furthermore, Marathon Petroleum's commitment to investing in advanced refining technologies enables it to continuously enhance operational efficiency while meeting stringent environmental regulations, positioning it for sustainable growth within the competitive landscape of the US oil and gas refining sector.

Key Companies in the US Oil and Gas Refining Industry Market Include:

• ExxonMobil


• Marathon Petroleum


• PBF Energy


• Calumet Specialty Products Partners


• Hess Corporation


• Par Pacific Holdings


• Valero Energy


• HollyFrontier


• Delek US Holdings


• Andeavor


• Western Refining


• CITGO Petroleum


• Phillips 66


• Chevron

US Oil and Gas Refining Industry Market Industry Developments

Recent developments in the US Oil and Gas Refining Industry have showcased significant shifts, particularly in the performance of major companies like ExxonMobil and Valero Energy. In September 2023, ExxonMobil reported a notable surge in refining margins, driven by higher demand for diesel and jet fuel as travel restrictions ease. Marathon Petroleum has also expanded its operations, focusing on increased output to meet rising consumer needs. Meanwhile, PBF Energy announced plans to enhance its throughput capabilities at its facilities in California, aiming to increase production amid projected growth in refinery activity across the West Coast.

In terms of mergers and acquisitions, in April 2023, a strategic acquisition by Phillips 66 of a smaller refining firm highlighted ongoing consolidation trends in the industry. The overall market valuation of these companies has been positively impacted by the recovery in fuel demand post-pandemic. The US Energy Information Administration reported a robust increase in refinery utilization rates, which are currently around 92%, marking a significant rebound compared to previous years. In broader market trends, the industry's focus on sustainability and emission reductions continues to reshape operational strategies, aligning with new regulatory expectations.

US Oil and Gas Refining Industry Market Segmentation Insights

Oil and Gas Refining Industry Market Complexity Type Outlook

• Topping


• Hydro-Skimming


• Conversion


• Deep Conversion

Oil and Gas Refining Industry Market Product Type Outlook

• Light Distillates


• Middle Distillates


• Fuel Oil


• Others

Oil and Gas Refining Industry Market Fuel Type Outlook

• Gasoline


• Gasoil


• Kerosene


• LPG


• Others

Oil and Gas Refining Industry Market Application Outlook

• Transportation


• Aviation


• Marine Bunker


• Petrochemical

Residential & Commercial

• Agriculture


• Electricity


• Rail & Domestic Waterways


• Others

Report Attribute/Metric Source:	Details
MARKET SIZE 2018	321.82 (USD Billion)
MARKET SIZE 2024	380.0 (USD Billion)
MARKET SIZE 2035	650.0 (USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	5.001% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	ExxonMobil, Marathon Petroleum, PBF Energy, Calumet Specialty Products Partners, Hess Corporation, Par Pacific Holdings, Valero Energy, HollyFrontier, Delek US Holdings, Andeavor, Western Refining, CITGO Petroleum, Phillips 66, Chevron
SEGMENTS COVERED	Complexity Type, Product Type, Fuel Type, Application
KEY MARKET OPPORTUNITIES	Increased demand for cleaner fuels, Investment in advanced refining technologies, Expanding petrochemical production capacities, Growth in renewable diesel production, Optimizing supply chain efficiencies
KEY MARKET DYNAMICS	Regulatory compliance changes, Crude oil price volatility, Technological advancements, Environmental sustainability pressure, Market consolidation trends
COUNTRIES COVERED	US