Increasingly strict environmental and product-quality regulations, the shrinking market for high-sulfur fuels, and the price benefit of processing heavier and more sour crude oils has pushed oil refiners to increase their hydrocracking and hydrotreating capacities. The resulting increase in hydrogen consumption and limited or even decreased generation are creating tight hydrogen balances in many refineries throughout the world. The efficient use of hydrogen is a necessity, with refineries facing eroded margins due to constrained refinery operations or the need for significant investments in hydrogen generation and purification. This paper addresses the problem of refinery hydrogen distribution. A systematic method for the analysis of hydrogen distribution systems based on the concept of hydrogen surplus is proposed. This method sets targets for the minimum flow rate of fresh hydrogen required by the refinery before any system design. The analysis method is used to provide quantitative insights and to identify the existence of bottlenecks in the hydrogen distribution system.