White House weighs how to use Defense Production Act to expand US oil refining capacity, sources say
White House officials are considering federal incentives to add refinery capacity as utilization reaches 98% and fuel prices stay elevated.
- The White House is weighing whether to use the Defense Production Act to expand U.S. oil refining capacity, responding to fuel-price spikes caused by the Iran conflict.
- Fuel prices have climbed above $6 a gallon as U.S. refiners operate at 98% utilization, leaving little room to increase output without new capacity.
- America First Refining's proposed 168,000-barrel-per-day facility at the Port of Brownsville, Texas, has emerged as a test case, though the project faces scrutiny for ties to President Donald Trump's family and administration.
- During a recent meeting, refining executives told Trump that federal money should support making existing plants more efficient rather than financing entirely new refineries, which take years to complete.
- Trump recently secured a 35% equity stake in North American Blue Energy Partners, while India's Reliance Industries agreed to a 20-year deal to purchase the refinery's output.
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️ — The U.S. is considering using the Defense Production Act to expand oil refining capacity as the Iran war pushes fuel prices higher ahead of the midterms, Reuters reports
The law has never previously been used to add refining capacity, while industry executives argue that expanding existing refineries would be faster and more practical than building new plants, which could take years and cost...
Exclusive-White House weighs how to use Defense Production Act to expand US oil refining capacity, sources say
By Jarrett Renshaw Sept 11 (Reuters) - The White House is weighing how to use the Defense Production Act to expand U.S. oil refining capacity as the conflict with Iran exposes the country's vulnerability to global crude supply disruptions and price spi...
The Economic Times
White House weighs how to use Defense Production Act to expand US oil refining capacity, sources say
The White House is exploring using the Defense Production Act to boost oil refining capacity. This consideration follows President Trump's meeting with nearly a dozen U.S. refiners. Refiners suggested expanding existing plants or improving efficiency over new construction. U.S. refinery utilization has reached 98%, highlighting current operational limits. The administration seeks to address global supply disruptions and rising fuel prices.
Reuters has confirmed that the US administration is studying the activation of the Defense Production Act to enhance oil refining capabilities.
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