The rapid expansion of the United States oil and gas sector has seen refiners pushing ahead with over $1.3 billion in large-scale downstream investments across the US downstream sector. Several US operators have poured significant funds into upgrading aging refineries and constructing new ones that are set to be completed this year. With the US preparing for a wave of heavy crude from South America, upgraded refineries have become a necessity.
The US energy industry: An exemplar of growth and domestic energy expansion
A litany of US refineries is preparing for the annual surge in energy demand. With winter in full effect, the United States has seen the annual increase in energy demand, resulting in several US-based refiners pushing forward with new developments.
Energy market analysts have noted that over $1.3 billion is expected to be poured into the US downstream market this year, with some of the largest and most profitable energy companies standing at the ready, with open checkbooks in hand.
Of the eye-watering $1.3 billion in new investments in downstream operations, upgrades to existing refineries account for the bulk of the planned capital spending this year.
ExxonMobil has made a sizable capital investment that positions the company at the forefront of the US expansion
As several US refiners aim to develop an increased output capacity, ExxonMobil has accounted for the single highest-valued project, with its planned addition of a waste-recycling unit at the company’s refinery in Beaumont, Texas, the heart of the US energy industry.
The new waste-recycling unit is designed to process approximately 80 million pounds per year of plastic waste. The development follows a similar upgrading project at the company’s chemical production plant in nearby Baytown, Texas.
“We’re starting up our second advanced recycling unit at Baytown, using proprietary technology to recycle plastic waste at a much lower cost than alternative processes. Like our first advanced recycling unit, the [Beaumont] one will have capacity to process 80 million pounds a year for a growing market of certified circular polymers.” – Darren Woods, CEO of ExxonMobil
Can other US refiners benefit from increased demand in 2026?
Putting the efforts of ExxonMobil aside, the reality is that the rapid expansion of the US energy sector requires more capital investments from refiners and operators to meet the expectations for demand over the coming year.
Marathon Petroleum, another major US-based energy company with significant assets in the US, has topped the list of U.S.-based refiners investing heavily in refining operations. The company has recently stated that it has shifted its refining strategy to handle more volumes of heavy crude, most likely coming from Venezuela, as the US divvies up its oil resources.
Marathon has noted that a series of investments to upgrade operations at its refinery in Canton, Ohio, will not exceed $60 million, allowing the company to plan further investments in other refining operations around the US.
“We are executing smaller, high-return, quick-hit projects targeted at enhancing refinery yields, improving energy efficiency and lowering our cost, leveraging our fully integrated refining system and geographic diversification.” – Maryann Mannen, Chief Executive Officer of Marathon Petroleum
Will 2026 see the United States dominate the refining sector on the global stage?
That would be the hope for the litany of US refiners this year. Whether or not the US can foster a welcoming environment to facilitate further large-scale investments to handle higher volumes of crude is yet to be determined, but if the current stance of the Trump administration is anything to go by, one could expect the global domination of the refining sector by the US to continue, especially as an anticipated surge in crude from Venezuela hits the US market in the near future. As the US market grows in 2026, the world is keeping a close eye on the refining upgrades in the United States.
