NAICS 324110 Quarterly Industry Report
Petroleum Refineries
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 324110Sector: 32Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 324110 provides business owners, acquirers, and financial advisors with data-driven valuation insights for the petroleum refining sector, drawing on data from the U.S. Census Bureau[4] and U.S. Energy Information Administration[8] refining statistics. Additional data is drawn from Bureau of Labor Statistics[9].. The report aggregates transaction multiples, financial benchmarks, and market trends specific to NAICS 324110 establishments, supporting buy-sell agreements, succession planning, SBA-financed acquisitions, and litigation support engagements.
Industry Definition & Overview
Petroleum Refineries (NAICS 324110) encompasses establishments primarily engaged in refining crude petroleum into gasoline, diesel fuel, jet fuel, heating oil, lubricating oils, and other refined petroleum products through fractionation, straight distillation, and cracking processes. Refining operations transform crude oil into hundreds of product streams through atmospheric and vacuum distillation, catalytic cracking, hydrocracking, reforming, and blending processes operating continuously across complex integrated facilities. According to the U.S. Census Bureau[4], approximately 130 operating refineries employ over 66,000 workers and generate annual revenues exceeding $500 billion, making petroleum refining one of the highest-revenue manufacturing sectors in the United States.
Domestic refining capacity exceeds 18 million barrels per day, with Gulf Coast facilities representing the largest regional concentration of refining infrastructure. The Bureau of Labor Statistics[5] reports production roles including process operators managing distillation units and cracking systems, chemical engineers overseeing catalyst management, instrumentation technicians maintaining distributed control systems, and environmental compliance specialists managing air emissions and wastewater treatment systems.
Per the SBA Office of Advocacy[6], the refining sector is dominated by large integrated oil companies and independent refining corporations, though smaller specialty refiners processing niche crude grades or producing specialty products do operate within SBA small business thresholds. Stringent EPA[7] Clean Air Act and renewable fuel standard requirements impose substantial compliance costs while energy transition policies create long-term strategic planning challenges for refinery investors and operators.
What's Included in This Industry
- Valuation multiples benchmarked to petroleum refining operations
- Revenue and EBITDA trends for domestic refining and fuel manufacturing
- SBA lending data and financing terms for NAICS 324110
- Comparable transaction data from recent refinery acquisitions and divestitures
- Industry risk factors including crack spread volatility and regulatory compliance costs
- Workforce composition and labor cost benchmarks for refinery operations
- Regional market analysis covering major U.S. refining centers and PADD districts
- Capital expenditure benchmarks for refinery maintenance and expansion projects
- Growth projections addressing energy transition impacts and renewable fuel integration
- Owner compensation and discretionary earnings benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Petroleum and Coal Products Manufacturing | 324 |
| Industry Group | Petroleum and Coal Products Manufacturing | 3241 |
| NAICS Industry | Petroleum Refineries | 32411 |
| National Industry | Petroleum Refineries | 324110 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 211120 | Crude Petroleum Extraction | Crude petroleum extraction operations producing the primary raw material feedstock consumed by petroleum refineries through pipeline and marine supply chains |
| 486110 | Pipeline Transportation of Crude Oil | Crude oil pipeline transportation operators moving feedstock from production basins to refinery gate receiving terminals across domestic transportation networks |
| 324191 | Petroleum Lubricating Oil and Grease Manufacturing | Petroleum lubricating oil and grease manufacturers blending refined base oils produced at refineries into finished lubricant products for automotive and industrial markets |
| 324199 | All Other Petroleum and Coal Products Manufacturing | Other petroleum and coal product manufacturers producing specialty products from refined petroleum intermediates including waxes, coke, and petroleum jelly |
| 424710 | Petroleum Bulk Stations and Terminals | Petroleum bulk stations and terminal merchant wholesalers distributing refined fuel products from refinery loading racks to retail and commercial end users |
| 325199 | All Other Basic Organic Chemical Manufacturing | Basic organic chemical manufacturers purchasing refinery petrochemical feedstocks including ethylene, propylene, and benzene for downstream chemical production |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Texas | 26.3% | 35 |
| 2 | Louisiana | 15.8% | 21 |
| 3 | California | 13.5% | 18 |
| 4 | Utah | 4.5% | 6 |
| 5 | Washington | 3.8% | 5 |
| 6 | Wyoming | 3.0% | 4 |
| 7 | Pennsylvania | 3.0% | 4 |
| 8 | Oklahoma | 3.0% | 4 |
| 9 | Ohio | 3.0% | 4 |
| 10 | Montana | 3.0% | 4 |
% Of Establishments
0%
26%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the typical valuation multiple for a petroleum refinery?
Petroleum refineries are typically valued based on replacement cost, net asset value, and normalized EBITDA multiples ranging from 4x to 7x during mid-cycle crack spread conditions. Per U.S. Energy Information Administration[8] data, refinery valuations are highly sensitive to regional crack spreads, crude oil quality discounts, and the complexity of the refining configuration.
What SBA loan options are available for petroleum refining businesses?
The SBA[10] applies dual size standards for NAICS 324110 requiring both fewer than 1,500 employees and less than 200,000 barrels per day of operable distillation capacity. Given the massive capital requirements of refining, SBA financing is primarily relevant to specialty refiners, terminal operators, and small-scale biofuel blending operations rather than large-scale crude oil refineries.
How do crack spreads affect refinery profitability?
Crack spreads measure the difference between crude oil input costs and refined product output prices, representing the primary margin determinant for refineries. Per U.S. Energy Information Administration[8] pricing data, the 3-2-1 crack spread measuring gasoline and distillate margins against crude oil serves as the standard industry benchmark for refining profitability analysis.
What environmental regulations affect petroleum refineries most significantly?
Refineries face extensive EPA[7] regulation under the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act, with renewable fuel standard blending mandates adding compliance costs for renewable identification number credits. Air quality permits governing sulfur dioxide, nitrogen oxide, and volatile organic compound emissions represent the most operationally significant regulatory requirements.
How is the energy transition affecting refinery valuations?
Electric vehicle adoption and renewable fuel policies create long-term demand uncertainty for traditional refined fuels, particularly gasoline. Per U.S. Energy Information Administration[8] projections, some refineries are converting to renewable diesel and sustainable aviation fuel production, while others face potential stranded asset risk depending on their geographic position and conversion economics.
What is the SBA size standard for petroleum refineries?
The SBA[10] applies dual criteria for NAICS 324110: businesses must have fewer than 1,500 employees and less than 200,000 barrels per day of total operable atmospheric crude oil distillation capacity. This dual threshold reflects the capital-intensive nature of refining and limits small business classification to smaller specialty refining operations.
What capital investments are most critical for petroleum refineries?
Turnaround maintenance cycles requiring periodic unit shutdowns for catalyst replacement, vessel inspection, and equipment overhaul represent the largest recurring capital commitments. Per U.S. Census Bureau[4] Annual Survey of Manufactures data, environmental compliance projects, safety system upgrades, and clean fuel production modifications also drive substantial capital expenditure requirements.
What are key factors in refinery acquisition due diligence?
Critical factors include refining configuration complexity, crude slate flexibility, environmental permit status, deferred maintenance liability, and proximity to crude supply and product demand markets. Per U.S. Energy Information Administration[8] data, acquirers evaluate Nelson complexity index ratings, logistics infrastructure access, and the long-term viability of the product slate.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]Bureau of Labor Statistics bls.gov
- [6]SBA Office of Advocacy advocacy.sba.gov
- [7]EPA epa.gov
- [8]U.S. Energy Information Administration eia.gov
- [9]Bureau of Labor Statistics bls.gov
- [10]SBA size standards sba.gov
- [11]SBA 7(a) loan program sba.gov
- [12]CDC/504 loan program sba.gov
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