American Petroleum Institute President and CEO Mike Sommers says a possible release of oil reserves would be an “insurance policy” on “Kudlow.”
President Donald Trump announced Tuesday that America First Refining (AFR) is opening the first new U.S. oil refinery in nearly half a century in Brownsville, Texas.
Located in a vast deepwater foreign trade zone, the project will use advanced infrastructure and strategic rail and sea links to transport low-carbon fuels and other energy products.
“America Returns to TRUE ENERGY DOMINANCE!” Trump wrote in an announcement on Truth Social. “THIS IS A HISTORIC $300 BILLION DOLLARS DEAL – THE LARGEST IN US HISTORY, A HUGE PROFIT for American workers, energy and the GREAT people of South Texas!”
AFR said the refinery will generate thousands of construction and permanent jobs while offering wages that exceed market averages.
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America First Refining opens the first new U.S. oil refinery in nearly half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
Partners in India and its largest private energy company, Reliance, have made a “huge” investment in the project, according to Trump.
AFR also signed a binding 20-year offtake term sheet with the global supermajor.
The company plans to formally start construction of the new refinery in the second quarter of 2026.
“It is thanks to our America First Agenda, streamlining permits and lowering taxes, that has attracted billions of dollars in deals returning to our country,” Trump said. “A new refinery at the Port of Brownsville will fuel American markets, strengthen our national security, boost American energy production, deliver billions of dollars in economic impact and be THE CLEANEST REFINERY IN THE WORLD.
“It will boost global exports and bring THOUSANDS of long-awaited jobs and growth to a region that deserves it,” the President continued. “This is what AMERICAN ENERGY DOMINANCE looks like. AMERICA FIRST, ALWAYS!”
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America First Refining opens the first new U.S. oil refinery in nearly half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
Under the newly signed agreement, 1.2 billion barrels of U.S. light shale oil will be purchased and processed, worth $125 billion; AFR will produce 50 billion liters of refined products, worth $175 billion; and the U.S. trade imbalance will improve by $300 billion, according to AFR.
The refinery is specifically designed to process U.S. light shale oil (47° API), which is cleaner, more efficient and cheaper to process than heavier imported crude oil.
Unlike many existing U.S. refineries that rely on foreign oil, the facility will not require imported crude oil, strengthening U.S. national and economic security.
The refinery’s key advantages include the capacity to process 60 million barrels per year of 100% U.S. light shale oil, a strategic location in a deep-water U.S. port allowing distribution to domestic and international markets, and the production of some of the cleanest gasoline, diesel and jet fuels widely refined in the U.S.
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America First Refining opens the first new U.S. oil refinery in nearly half a century in Brownsville, Texas. (America First Refining / FOXBusiness)
From 2014 to 2024, the U.S. exported nearly 10 billion barrels of crude oil while still importing about 28 billion barrels, costing American consumers and workers more than $1.8 trillion.
Once operational, the AFR refinery will return up to 60 million barrels of U.S. crude oil annually to domestic refining, strengthening U.S. industry, energy security and economic growth.
In addition to industrial growth, there is also that of the company website notes that it will encourage community engagement through educational partnerships and apprenticeships designed to promote social equity and long-term economic stability in the area.
The executive management team has more than a century of combined experience in the chemical and refining industries and has managed nearly $40 billion in complex capital projects.
An oil rig in the Gulf of America. (Reuters/Reuters)
“This project represents a historic step forward for 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 specifically designed for American shale oil. Thanks to President Trump’s leadership and the revival of an America First energy policy, we will create thousands of high-quality jobs while ensuring more of our nation’s energy resources are refined right here at home in the cleanest, most efficient refinery in the world.”
CEO Trey Griggs added that the U.S. has a surplus of light shale oil but a shortage of refining capacity designed to process it.
| Ticker | Security | Last | Change | Change % |
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| XOM | EXXON MOBIL CORP. | 148.12 | -2.31 |
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“By building this refinery at the Port of Brownsville, we are unlocking a major expansion of American energy production, while creating thousands of good-paying jobs and strengthening our domestic supply chain,” said Griggs, who previously held top positions at major companies including Calpine and Goldman Sachs.
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Other key executives bring decades of experience managing global operations, midstream logistics and large trading portfolios of industry heavyweights such as BP, Shell Oil, ExxonMobil, Vitol and Sunoco Logistics Partners.
The strategic advisory board consists of seasoned leaders who have served as CEOs and top executives for companies including CVR Energy, YCI Methanol One and Royal Dutch Shell.
