Archive · 11 Sep 2026
White House Weighs Defense Act to Expand U.S. Refining
The White House is thinking about using a special law to help the United States make more fuel.
Officials discussed the idea with President Donald Trump and oil-refining companies.
The companies said it would be faster and cheaper to improve existing refineries than build a completely new one.
U.S. refineries are already working at about 98% of their capacity.
Even so, fuel prices are high, with diesel costing more than $6 per gallon on average.
The administration says expanding refining could help protect the country from disruptions in oil supplies.
It is also looking at getting more oil from Venezuela.
A planned refinery in Brownsville, Texas, may show how the government’s plans could work, but no funding decision has been made.
The White House is considering using the Defense Production Act to expand U.S. oil-refining capacity.
The proposal was discussed at a meeting between President Donald Trump and nearly a dozen U.S. refiners, with no final decisions reached.
Refining executives favored federal support for improving or expanding existing plants rather than building a new refinery.
U.S. refinery utilization has reached 98%, while diesel prices have exceeded $6 per gallon and gasoline prices remain elevated.
A proposed 168,000-barrel-per-day refinery in Brownsville, Texas, could become a test case, though its eligibility for Defense Production Act funding is unclear.
- Who
- The White House, President Donald Trump, U.S. refining executives and federal officials.
- What
- Officials are considering using the Defense Production Act to expand U.S. oil-refining capacity.
- When
- The proposal was discussed at a recent meeting; a presidential determination authorizing the act for petroleum capacity was issued in April.
- Where
- The discussions concern refining capacity in the United States, including a proposed facility in Brownsville, Texas.
- Why
- The administration is responding to high fuel prices and concerns that the conflict with Iran could disrupt global crude supplies, while facing affordability pressure before the midterm elections.
Improve Existing Refineries
Build New Refining Capacity
Use of Federal Support
Improve Existing Refineries
Refining executives said federal money would be better used to make existing refineries more efficient or expand current plants because this would be less costly and faster.
Build New Refining Capacity
The White House is evaluating broader options to increase refining capacity, including additional investment and the possible construction of new facilities.
Brownsville Refinery
Improve Existing Refineries
The article does not establish that the proposed Brownsville facility will receive Defense Production Act funding.
Build New Refining Capacity
America First Refining’s planned 168,000-barrel-per-day facility has been presented as a potential test case for the administration’s effort to expand U.S. refining capacity.
- Refinery utilization
- U.S. refineries were operating at 98% utilization, according to the latest data cited.
- Diesel price
- The national average diesel price has risen above $6 per gallon.
- Defense Production Act
- The law allows the president to direct industrial resources and provide incentives for materials considered important to national defense.
- Refining proposal
- Refining executives recommended improving or expanding existing plants rather than financing an entirely new refinery.
- Brownsville project
- America First Refining plans a 168,000-barrel-per-day facility at the Port of Brownsville.
- Venezuelan oil
- The White House says millions of barrels of new Venezuelan production could eventually be processed through U.S. refineries.