Marketplace All-in-One Refineries brace for crude drought
Mar 12, 2026
Justin Ho, a Marketplace reporter covering energy markets, explains how a Strait of Hormuz closure could choke Middle East crude flows. He outlines which refineries would be cut off and why plants cannot quickly swap crude types. He also describes what happens when refineries idle and what would drive rushed restarts.
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Refinery Restarts Can Take Weeks Or Months
- Restarting idled refinery units can take days to months depending on the extent of shutdown.
- Mark Broadbent said partial unit shutdowns take one to two weeks, full refinery restarts can take one to two months.
Domestic Oil Can't Easily Reach California
- U.S. domestic oil production doesn't help California refineries because pipeline links are lacking.
- Hugh Daigle notes there's none of the pipeline infrastructure to move crude from Texas to California.
Refiners Should Keep Running During Supply Shocks
- Refiners are incentivized to keep operating during supply shocks because high fuel prices raise margins.
- Robbins said higher prices and demand create a strong economic reason to run plants as much as possible.