US To Build First Oil Refinery In 50 Years As Crude Oil Prices Cross $100 Per Barrel, What Does It Mean Amid Backdrop Of Iran War? Explained

The US is about to get its first new oil refinery in nearly 50 years.

President Trump shared the news himself: a refinery called America First Refining is set to open in Brownsville, Texas. He posted online, “I am proud to announce that America First Refining is opening the FIRST new US Oil Refinery in 50 YEARS in Brownsville, Texas.”

This announcement came just as energy and gas prices have been climbing, especially since the war in Iran started on February 28. Earlier this week, crude oil prices shot past $100 a barrel.

What’s happening with this refinery? And where does US oil production stand right now?

Trump claims the project is worth about $300 billion. According to Bloomberg, an energy company called Element Fuels, based in Houston, is behind the plan. They finished getting the site ready and have all the permits they need. That all wrapped up in June 2024.

The refinery’s supposed to handle around 160,000 barrels of oil each day. Interestingly, Element Fuels’ website now points straight to America First Refining, which lines up with Trump’s announcement.

Construction is set to start in the second quarter of 2026. The company also says it’s locked in a 20-year deal to sell fuel to Reliance Industries. The Brownsville facility is designed to run entirely on US shale oil.

What does it mean amid the US-Iran war?

President Donald Trump announced that America First Refining, backed by investment from Reliance Industries, is building a new refinery to handle American shale oil and ramp up fuel production here at home.

Once it’s up and running, the plant will take in around 160,000 barrels of crude each day. That means more refining power for the U.S. and a stronger grip on our own energy supply.

Experts believe this new project takes some of the pressure off fuel supplies and helps cut back on our need for imported oil, especially as prices keep rising around the world.

Trump’s $300 billion estimate seems to come from the projected value of all the oil they’ll process and the fuel they’ll produce over the next twenty years. 

An overview of the US oil production and exports

As per the statistics given in the International Energy Statistics, the US is the largest producer of crude oil in the world. Russia and Saudi Arabia are the nations that follow it.

Peak The crude oil production was 9.6 million bd in 1970 and then it flattened and started to decrease in 1990 and 2000. In 2008 the production of oil in America reached its lowest ever recorded history at 5.0 million bd. Nonetheless, it started accelerating during the years 2009, when the world saw the applications of hydraulic fracturing and horizontal drilling.

The US has been the top oil producer in the world in the seven consecutive years. The Permian Basin in western Texas and eastern New Mexico has been the driving force behind much of the growth in the production of crude oil and natural gas.

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