How is refinery capacity typically measured?

Refinery capacity is typically measured in barrels per day (BPD) because this unit provides a standardized way to quantify the volume of crude oil that a refinery can process over a 24-hour period. The use of barrels as a measurement unit is prevalent in the oil industry, as it aligns with how crude oil is traded and moved. One barrel is equal to 42 US gallons, which allows for effective comparison across refineries and is relevant to the production and consumption dynamics of the oil market.

Measuring capacity in barrels per day helps operators and investors assess the size and throughput of a refinery, which is essential for operational planning, inventory management, and financial forecasting. It also allows for easy comparison between refineries of different sizes or with different types of crude processing capabilities.

While other measurement units like liters per hour, cubic meters, and tons per week could be used in various contexts, they do not provide the same industry-standard approach that barrels per day does for assessing refinery capacity specifically.