© Reuters. Phillips 66 gasoline station in St. Louis, Missouri
(Reuters) – U.S. oil refiner Phillips 66 (NYSE:PSX) on Monday set its 2021 capital budget at $1.7 billion, around 43% lower than forecast for the previous year, as the energy industry struggles to recover from the blow of the COVID-19 pandemic.
The coronavirus crisis dented demand for crude oil and created a supply glut, although prices have recovered from historic lows hit earlier this year as vaccines have started rolling out across the world.
Phillips 66's 2021 refining capital budget of $776 million includes pre-construction costs related to the company's plans to reconfigure its San Francisco Refinery in Rodeo, California, to produce renewable fuels.
Including contributions from affiliates, the company's adjusted 2021 capital program will be about $2.38 billion, below 2020's forecast of $2.9 billion.
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