Auto industry revs up for race to meet fuel standards

But automotive and petrochemical engineers are heading into overdrive to create gas-saving technologies.

New fuel economy targets require automakers to nearly double the average miles per gallon of passenger vehicles, hitting 54.5 by 2025. That means cars and trucks that Americans buy in 13 years will be smaller and have turbocharged engines and more assisted-driving features that cut back on trips to the gas pump, industry analysts say.

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From Ford's EcoBoost engine to Chrysler's nine-speed transmission, auto companies are working to make their cars and trucks more fuel efficient. That's bad news for the nation's refineries, which already have seen demand for their petroleum products drop more than 10 percent since 2006.

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The decline is expected to continue. Some industry leaders say gasoline demand in the United States peaked several years ago and will fall for the foreseeable future. Refineries have closed in Pennsylvania and the U.S. Virgin Islands in recent years.

“You can't just take away 20 to 40 percent of your market and expect these things to run,” said Charles Drevna, president of the trade organization American Fuel & Petrochemical Manufacturers.