The White House is considering using the Defense Production Act to increase the oil refining capacity in the United States. This comes in response to rising fuel prices and high refinery usage rates reported recently.
1. Current Refinery Capacity: U.S. oil refineries operated at 97.8% of capacity in early September 2026. This high usage indicates a need for increased refining capability to meet demand.
2. Consultations and Recommendations: Refining executives have recommended that federal funds prioritize making existing refineries more efficient or expanding them rather than building new refineries, which would be more costly and time-consuming.
3. Fuel Price Trends: Diesel prices have climbed to an average of $6.06 per gallon, while regular gasoline is at $4.29. This rise in fuel costs has drawn attention to the need for increased refining capacity.
4. Political Statements: President Donald Trump stated that oil prices would likely not decrease until after the upcoming midterm elections, highlighting the government's focus on securing affordable energy.
5. Potential Use of the Defense Production Act: The Defense Production Act allows the president to direct resources and provide financial incentives for critical materials related to national defense. Trump indicated that petroleum production and refining are essential for national security.
6. Proposed New Refinery in Texas: A new refinery planned at the Port of Brownsville could be a significant project. However, it is uncertain whether it will receive funding under the Defense Production Act. This refinery, announced by Trump in March, aims to have a capacity of 168,000 barrels per day and would be the first new Gulf Coast refinery in almost 50 years.
7. Foreign Oil Supply: The administration is also looking to increase foreign oil supply, including a partnership with a Venezuelan company that has rights to oil fields, promising that this production will be processed through U.S. refineries.
The Biden administration is actively exploring ways to boost U.S. oil refining capacity amidst rising fuel prices and ongoing geopolitical tensions. While no final decisions have been made regarding the use of the Defense Production Act, expanding the existing infrastructure rather than building new refineries appears to be a preferred strategy among industry leaders. The situation continues to evolve, especially as external factors influence domestic fuel markets.
https://dailycaller.com/2026/09/11/defense-production-act-oil-refineries-white-house-trump-admin/
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