Refiners boosting diesel fuel output in chase of profits

NEW YORK — Rising global demand for diesel is reshaping the U.S. oil refining industry.

While most U.S. motorists pay scant attention to the high price of the trucking fuel when filling up their cars with gasoline, refiners have taken note and are moving to boost capacity for the production of diesel. With long-distance freight hauling increasing steadily in the U.S., and diesel consumption in Europe and Asia growing even faster, fuel producers are looking to diesel for profit growth as the race to supply the U.S. gasoline market gets more competitive.


Energy companies are gauging changes in fuel markets and making plans for billions of dollars of refinery modifications. Having already invested billions of dollars into upgrades that were mandated by clean-air regulations, refiners, still flush with cash from high profits, face tough decisions on how to alter their production facilities for the production of very-low-sulfur diesel fuel mandated for use since late 2006.

Refiners can’t build their way to greater profits just by enlarging plants to process more crude oil.

Dow Jones Newswires