“American energy dominance is back under President Trump” reads a White Home assertion on the administration’s newest effort to claim vitality superiority, in a time when vitality prices are hovering and oil inventory is dropping. And now, Trump might very effectively hold his phrase, by going old-school: backing the primary new oil refinery within the nation in almost 50 years.
Because the U.S.-Israeli struggle with Iran drags into its second week and counting, Trump is feeling the stress to search for alternate options to Center Japanese oil provides, and he might have simply discovered one. He introduced on social media on Tuesday {that a} new oil refinery will open in Brownsville, Texas, and India’s Reliance Industries, India’s largest privately-held vitality firm and the operator of the world’s greatest refining complicated, is in talks to again the challenge.
The announcement comes as crude oil costs soared as much as $114.38 final weekend, and as Trump voters proceed to bitter on excessive fuel costs. The administration deliberate to make low fuel costs a key win for his or her midterm election campaigns, however the struggle continues to undermine the president’s affordability agenda.
The brand new refinery may increase U.S vitality independence and assist hold its standing as a internet exporter of petroleum. In 2025, the U.S. exported a median 2.2 million barrels per day to about 170 nations, along with supplying 60% of home calls for.
Strategically, the U.S. has been cautious to keep away from bombing Iranian oil infrastructure, even because the navy struck about 5,000 different targets, together with navy vessels and weapons factories, The Guardian reported. Vital harm to Iran’s infrastructure—specifically Kharg Island, by which 90% of Iranian oil exports journey by— would increase climbing oil costs.
Regardless of this, Israel hit a number of oil refineries and depots on Saturday, which coated Tehran in a blanket of poisonous, black smoke. On Tuesday, Iranian officers threatened to not enable “even a single liter of oil” to cross by the Strait of Hormuz for the U.S., Israel, or their allies. About 20% of the world’s oil and pure fuel is shipped by the strait, which ends up in the Persian Gulf.
First refinery opening in 50 years
The brand new refinery is predicted to interrupt floor in the course of the second quarter of 2026, in accordance with the developer, America First Refining. The opening was “made possible through the leadership of President Donald J. Trump and the success of his America First energy agenda,” the corporate wrote in a press release.
The refinery is a similar challenge that was being developed by Aspect Fuels Holdings, a Texas startup whose web site now redirects to America First Refining. In June 2024, Aspect Fuels introduced that web site preparation was full, and it was able to assemble a plant able to processing about 160,000 barrels of oil a day. If accomplished, the refinery could be the primary new challenge since a Garyville, Louisiana facility—owned by MarathonPetroleum Company (MPC), the biggest refiner within the nation which processes about three million barrels a day—got here on-line in 1977, the Monetary Occasions reported.
The president wrote on social media the challenge was “A HISTORIC $300 BILLION DOLLAR DEAL”.
Below the settlement with the India vitality large Reliance, America First Refining will buy and course of 1.2 billion barrels of U.S. gentle shale oil, value $125 billion, the assertion. The corporate expects to provide 50 billion gallons of refined oil merchandise value $175 billion, in accordance with the assertion. On the 2024 price of 160,000 barrels a day, producing that a lot oil would take the corporate greater than 850 years. America First Refining’s present contract to promote and tribute the fuels it produces is 20 years lengthy, in accordance with the assertion.
Reliance’s proprietor Mukesh Ambani is an investor in Trump’s actual property agency, and even attended his second inauguration. Indian oil corporations got here underneath fireplace with the Trump administration final yr after shopping for Russian oil as a substitute of costlier Center Japanese oil. With the struggle, the administration has granted the nation a 30-day waiver to purchase Russian oil at present stranded at sea
As of 2025, the U.S. has 131 working oil refineries, in accordance with the Vitality Info Administration. At the tip of 2024, the U.S. refining capability was 18.4 million barrels per day, in accordance with information from the U.S. Vitality Info Administration. Since October, two California refineries with mixed capability of 284,000 barrels per day have introduced plans to completely shut, citing the state’s regulation of fossil gas industries, in accordance with Reuters.
