Overview

The 160 petroleum refineries in the US transform crude petroleum into usable products. Gasoline accounts for over 90% of industry sales. Other products include light fuel oils, heavy fuel oils, jet fuel, and kerosene. Firms typically operate multiple refineries in areas strategically located near sources of supply, distribution centers, or key customers.

Push for Renewable Fuels

Concern over the environment and dependence on fossil fuels have led to a government and public push for renewable and alternative fuels.

Capital-Intensive Operations

The petroleum refinery business is extremely capital intensive and requires significant investment in plants, property, and equipment.