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ConocoPhillips, its coffers flush from one of the oil industry's best quarters ever, said on Wednesday it plans to spend $12 billion next year, funneling much of it into the thinly-stretched U.S. refining sector.

The plan also includes increasing capacity at nine of the company's 12 U.S. refineries

Mulva told lawmakers Conoco plans to add 11% to its U.S. refining capacity by 2011 at a cost of $4 billion to $5 billion, adding the equivalent of what Conoco calls a "world-scale refinery to the company's U.S. refining system."

In addition to expanding its operating capacity, Conoco announced Tuesday it will use some of the profit to buy back up to $1 billion of its own stock over the next two years.