In a prior note (U.S. Oil Production and Capex Expected to Rise, June 20, 2022), we look at the energy industry from a production and capital expenditure perspective.  U.S. President Joe Biden has called upon the industry to increase both oil production and refining capacity. In this note, we focus on the latter as refineries play a key role in the lifecycle of a barrel of oil by converting it into refined products including gasoline, diesel, and jet fuel. Exhibit 1 highlights the U.S. refining system at an aggregate level.  As of May 2022, refining capacity stands at 17.9 million