Refiners slow to convert to use of shale oil

Fuel Fix:

Even as U.S. oil production continues to grow, the nation's refining capacity is barely budging, the research firm Morningstar said Monday.

Refinery capacity in 2017 was 18.6 million barrels per day, virtually the same as the previous year, even as crude production continues to set records, hitting 10.5 million barrels per day in April.

"Primary crude distillation capacity is not expected to increase more than a tiny fraction in 2018 either," said Sandy Fielden, director of oil and products research at Morningstar. "Although major oil companies like ExxonMobil have announced plans to expand existing Gulf Coast refineries to process additional shale crude in the coming years, there is little talk of building new large-scale plants."
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This is one of the reasons the US is still importing heavy crude and exporting light crude from shale wells.  I think the ethanol requirement is one of the problems behind this situation that is hurting energy independence.  Some refineries are having to waste nonproductive spending on RINs rather than put the money into plant modifications that would make the US less dependent on foreign oil.  The ethanol requirement is having the opposite of its intended effect of reducing imports.

There is a move by some small refie\neries to build facilities to refine the shale crude near where it is produced.  Exxon appears to be the only big player who is actually planning for refining the shale light crude.