American Petroleum Institute President and CEO Mike Sommers says the release may be an insurance policy for ‘Kudlow.’
President Donald Trump on Tuesday announced that America First Refining (AFR) will open the first US oil refinery in nearly a century in Brownsville, Texas.
Located in a major deepwater trade hub, the project will use advanced infrastructure and rail-sea connectivity to transport low-carbon fuels and other energy products.
“America is returning to REAL POWER!” Trump wrote in an announcement on Truth Social. “THIS IS A HISTORIC 300 BILLION DOLLAR DEAL – THE BIGGEST IN US HISTORY, A BIG WIN FOR AMERICAN WORKERS, POWER, AND THE GREAT PEOPLE OF SOUTH TEXAS!”
AFR said the refinery would generate thousands of construction and permanent jobs, while providing wages above the market average.
WILL BUYING OIL OVERCOME GAS PRICE INCREASE?
America First Refining is opening the first US oil refinery in nearly half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
Our Indian partners and their largest private energy company, Reliance, have invested “a lot” in the project, according to Trump.
AFR also signed a binding 20-year exit sheet with a major global operator.
The company plans to officially break ground on the new refinery in Q2 2026.
“It’s because of our America First Agenda, the simplification of permits, and the reduction of taxes, that has attracted billions of dollars in deals back to our nation,” Trump said. “The New Refinery at the Port of Brownsville, will stimulate US markets, strengthen National Security, improve American Energy production, bring Billions of Dollars in Economic Impact, and will be the CLEANEST ROAD IN THE WORLD.
“It will empower Global Exports, and bring THOUSANDS of Jobs and Growth that have been long overdue to the Region,” continued the president. “This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!”
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America First Refining is opening the first US oil refinery in nearly half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
Under the new agreement signed, 1.2 billion barrels of US shale oil will be purchased and processed, worth $125 billion; AFR will produce 50 billion liters of refined products, worth $175 billion; and the US trade imbalance will improve by $300 billion, according to the AFR.
The refinery is specially designed to process American light shale oil (47° API), which is cleaner, more efficient and less expensive to process than imported heavy oil.
Unlike many existing US refineries that depend on foreign oil, this facility will not require imported feedstock, strengthening national security and the US economy.
The key advantages of this refinery include the capacity to process 60 million barrels per year of 100% US shale oil, an ideal location in the US’s deepest water port, allowing distribution to domestic and international markets and the production of refined gasoline, diesel and jet fuel that is moderately refined in the US.
Amid IRAN WAR, PRESIDENT TRUMP RAISES TEMPORARY OIL PRICES ‘MINIMUM PRICE TO PAY’ FOR PEACE.
America First Refining is opening the first US oil refinery in nearly half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
From 2014 to 2024, the US exported nearly 10 billion barrels of crude, while still importing nearly 28 billion barrels, costing American consumers and workers more than $1.8 trillion.
Once operational, the AFR refinery will redirect up to 60 million barrels of US crude annually back to domestic refining, strengthening American industry, energy security and economic growth.
Beyond industrial growth, the company’s website notes that it will pursue community engagement through educational and training partnerships designed to promote social equity and economic stability in the region.
The senior management team collectively has over a century of experience in the chemical and refining industries, having managed approximately $40 billion in large and complex projects.
An oil refinery in the Gulf of America. (Reuters / Reuters)
“This project represents a historic step forward in American energy production,” said John V. Calce, chairman and founder of America First Refining. “For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil. Thanks to President Trump’s leadership and the resurgence of America First energy policy, we are creating thousands of high-quality jobs while ensuring that more of our nation’s energy resources are refined here at home in the cleanest, most efficient place on earth.”
CEO Trey Griggs added that the US has surplus shale oil but lacks the refining capacity designed to produce it.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 148.12 | -2.30 |
-1.53% |
“By building this refinery in the Port of Brownsville, we are opening up a major expansion of America’s energy production while creating thousands of high-paying jobs and strengthening our domestic supply chain,” said Griggs, who has held senior leadership positions at major corporations, including Calpine and Goldman Sachs.
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Some senior executives bring decades of experience from managing global operations, centralized logistics and large trading portfolios across industry heavyweights such as BP, Shell Oil, ExxonMobil, Vitol and Sunoco Logistics Partners.
The strategic advisory board includes veteran leaders who have served as CEOs and senior executives of companies, including CVR Energy, YCI Methanol One and Royal Dutch Shell.
