American Petroleum Institute President and CEO Mike Sommers says potential oil reserve launch can be an ‘insurance coverage coverage’ on ‘Kudlow.’
President Donald Trump on Tuesday introduced America First Refining (AFR) is opening the primary new U.S. oil refinery in practically half a century in Brownsville, Texas.
Located in an enormous deep-water overseas commerce zone, the venture will leverage superior infrastructure and strategic rail and sea connections to move low-carbon fuels and different vitality merchandise.
“America is returning to REAL ENERGY DOMINANCE!” Trump wrote in an announcement on Fact Social. “THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN U.S. HISTORY, A MASSIVE WIN for American Employees, Power, and the GREAT Folks of South Texas!”
AFR mentioned the refinery will generate hundreds of development and everlasting jobs, whereas providing wages that exceed market averages.
WILL TAPPING OIL RESERVES CURB SOARING GAS PRICES?
America First Refining is opening the primary new U.S. oil refinery in practically half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
Companions in India and their largest privately held vitality firm, Reliance, made a “great” funding within the venture, based on Trump.
AFR additionally signed a binding 20-year offtake time period sheet with the worldwide supermajor.
The corporate plans to formally break floor on the brand new refinery in Q2 2026.
“It’s due to our America First Agenda, streamlining Permits, and reducing Taxes, which have attracted Billions of {Dollars} in Offers coming again to our Nation,” Trump mentioned. “A brand new Refinery on the Port of Brownsville, will gas U.S. Markets, strengthen our Nationwide Safety, increase American Power manufacturing, ship Billions of {Dollars} in Financial influence, and can be THE CLEANEST REFINERY IN THE WORLD.
“It can energy World Exports, and convey THOUSANDS of lengthy overdue Jobs and Development to a Area that deserves it,” the president continued. “That is what AMERICAN ENERGY DOMINANCE appears to be like like. AMERICA FIRST, ALWAYS!”
HOW THE IRAN WAR COULD HIT AMERICANS’ GROCERY BILLS
America First Refining is opening the primary new U.S. oil refinery in practically half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
Beneath the newly signed settlement, 1.2 billion barrels of U.S. mild shale oil can be bought and processed, a worth of $125 billion; AFR will produce 50 billion gallons of refined merchandise, a worth of $175 billion; and the U.S. commerce imbalance will enhance by $300 billion, based on AFR.
The refinery is particularly engineered to course of American mild shale oil (47° API), which is cleaner, extra environment friendly and less expensive to course of than heavier imported crude.
Not like many current U.S. refineries that depend upon overseas oil, the power is not going to require imported crude, which strengthens U.S. nationwide and financial safety.
Key benefits of the refinery embrace the capability to course of 60 million barrels per 12 months of 100% U.S. mild shale oil, a strategic location at a deep-water U.S. port, enabling distribution to home and worldwide markets and the manufacturing of among the cleanest gasoline, diesel and jet gas refined at scale within the U.S.
AMID IRAN WAR, PRESIDENT TRUMP SUGGESTS SHORT-TERM OIL PRICE SPIKE IS ‘SMALL PRICE TO PAY’ FOR PEACE
America First Refining is opening the primary new U.S. oil refinery in practically half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
From 2014 to 2024, the U.S. exported practically 10 billion barrels of crude, whereas nonetheless importing roughly 28 billion barrels, costing American shoppers and employees greater than $1.8 trillion.
As soon as operational, the AFR refinery will redirect as much as 60 million barrels of U.S. crude yearly again into home refining, strengthening American trade, vitality safety and financial progress.
Past industrial progress, the corporate’s web site notes it should drive group engagement by way of instructional partnerships and apprenticeships designed to foster long-term social fairness and financial stability within the space.
The chief administration group collectively has greater than a century of expertise within the chemical and refining industries, having managed practically $40 billion in complicated capital tasks.
An oil rig within the Gulf of America. (Reuters / Reuters)
“This venture represents a historic step ahead for American vitality manufacturing,” mentioned John V. Calce, chairman and founding father of America First Refining. “For the primary time in half a century, america will construct a brand new refinery designed particularly for American shale oil. Due to President Trump’s management and the resurgence of an America First vitality coverage, we’re creating hundreds of high-quality jobs whereas making certain extra of our nation’s vitality assets are refined right here at dwelling within the cleanest, most effective refinery on the planet.”
CEO Trey Griggs added the U.S. has a surplus of sunshine shale oil however a scarcity of refining capability designed to course of it.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 148.12 | -2.31 | -1.54% |
“By constructing this refinery on the Port of Brownsville, we’re unlocking a serious growth of American vitality manufacturing whereas creating hundreds of high-paying jobs and strengthening our home provide chain,” mentioned Griggs, who beforehand held prime management positions at main firms, together with Calpine and Goldman Sachs.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Different key executives convey many years of expertise from managing world operations, midstream logistics and enormous buying and selling portfolios throughout trade heavyweights like BP, Shell Oil, ExxonMobil, Vitol and Sunoco Logistics Companions.
The strategic advisory board contains seasoned leaders who’ve served as CEOs and prime executives for corporations, together with CVR Power, YCI Methanol One and Royal Dutch Shell.
