# Evolve or die: US refiners grasp renewables lifeline to stay viable

> S&P Global reported that US refiners are converting idle refining capacity to renewable diesel, supported by federal incentives and California low-carbon rules. It estimated about 1 million b/d of North American refining capacity will close.

- Date: 2020-11-04 · published 2020-11-04T12:00:00.000Z
- Category: policy · region US · magnitude medium
- Page: https://feedsoft.ai/events/50025-evolve-or-die-us-refiners-grasp-renewables-lifeline-to-stay-viable
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Renewable diesel conversions increase demand for soybean oil, tallow and used cooking oil as feedstocks. This supports vegetable oil prices, while the capacity cuts tighten hydrocarbon refining margins.

## Read by commodity

- SBO: bullish ▲
- WTI: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2020-06-24 | [Refiners start to add renewable diesel capacity, seen as cost-cutting move](https://feedsoft.ai/events/52478-refiners-start-to-add-renewable-diesel-capacity-seen-as-cost-cutting-move.md) | -0.7% | +6.2% |
| SBO | 2020-10-04 | [U.S. oil refiners look to leapfrog Canadians in making renewable diesel](https://feedsoft.ai/events/50523-u-s-oil-refiners-look-to-leapfrog-canadians-in-making-renewable-diesel.md) | +6.9% | +5.2% |
| SBO | 2020-10-05 | [US refiners accelerate transition to renewable fuels production \| Oil & Gas Journal](https://feedsoft.ai/events/50511-us-refiners-accelerate-transition-to-renewable-fuels-production-oil-and-gas.md) | +6.9% | +5.2% |
| SBO | 2021-08-17 | [Renewable fuel companies edge out some refiners on feedstock](https://feedsoft.ai/events/11368-renewable-fuel-companies-edge-out-some-refiners-on-feedstock.md) | -8.0% | -11.7% |
| SBO | 2020-06-01 | [HollyFrontier to convert oil refinery into renewable diesel plant](https://feedsoft.ai/events/52476-hollyfrontier-to-convert-oil-refinery-into-renewable-diesel-plant.md) | +2.8% | -0.7% |
| WTI | 2020-10-05 | [US refiners accelerate transition to renewable fuels production \| Oil & Gas Journal](https://feedsoft.ai/events/50511-us-refiners-accelerate-transition-to-renewable-fuels-production-oil-and-gas.md) | +9.6% | -3.4% |
| WTI | 2020-06-01 | [HollyFrontier to convert oil refinery into renewable diesel plant](https://feedsoft.ai/events/52476-hollyfrontier-to-convert-oil-refinery-into-renewable-diesel-plant.md) | +11.2% | +8.4% |
| WTI | 2025-02-03 | [OPEC+ sticks to oil policy, ditches US government data](https://feedsoft.ai/events/25942-opec-sticks-to-oil-policy-ditches-us-government-data.md) | -2.1% | -5.8% |

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/crude-oil/110420-evolve-or-die-us-refiners-grasp-renewables-lifeline-to-stay-viable

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.