Gulf Coast vulnerable as refiners hit hard times

The Gulf Coast could be the biggest loser in a shakeout of the U.S. refining business that some analysts and industry executives view as inevitable in coming years as rising costs and weaker demand for petroleum fuels pummel the industry.

The region is especially vulnerable not only because it has more plants than other areas and competition is more intense, but because a reduction in refining anywhere would hurt oil and gas companies that support jobs and economic growth in this part of the country.

Yet permanently closing oil refineries may be unavoidable if the industry is to remain profitable in the long term and adjust to what is likely to be a smaller U.S. market for petroleum fuels over time, analysts said.