Why Oil Majors Don’t Want to Build New U.S. Refineries

Billy Odell Tucker-Robinson Founder & Host — Banking With Billy Network • Financial Intelligence • Markets • World News • Independent Analysis
Published: 2026-09-03 • Permanent link

Fears are growing among investors as oil majors reveal a shocking reluctance to build new refineries in the United States. ExxonMobil, Chevron, and ConocoPhillips have all stated that they are unlikely to invest in new U.S. refineries, citing low profitability and a lack of demand. This decision has sent shockwaves through the energy market, with gasoline prices remaining above $4 per gallon on average across the country. The news has also sparked concerns about the long-term sustainability of the U.S. refining industry.

As the world grapples with the complexities of the energy transition, the decision by oil majors to abandon U.S. refineries has significant implications for investors. With the global demand for oil declining and renewable energy sources becoming increasingly competitive, the profitability of traditional refining operations is under threat. Investors who have bet heavily on the oil industry are now facing a potentially bleak outlook, with many fearing a sharp decline in share values.

Industry experts point to the historical context of the U.S. refining industry, which has long been characterized by a lack of investment and a reliance on outdated infrastructure. Since the 1970s, the industry has struggled to adapt to changing market conditions, with many refineries operating at or near capacity. This has led to a decline in productivity and a lack of innovation, making it increasingly difficult for oil majors to justify new investments in U.S. refineries.

The lack of new refineries in the U.S. raises important questions about the country's energy security and its ability to meet growing demand for fuels. As the global energy landscape continues to evolve, the U.S. will need to invest in new infrastructure and technologies to remain competitive. With the Biden administration pushing for a more aggressive transition to renewable energy sources, the decision by oil majors to abandon U.S. refineries may ultimately prove to be a strategic mistake.