Trump Announces First New US Oil Refinery in 50 Years with Reliance Partnership

Historic Energy Investment Comes to Texas

President Donald Trump announced Tuesday that the United States will build its first new oil refinery in half a century, backed by a $300 billion partnership with India's Reliance Industries . The facility, called America First Refining, will be located at the Port of Brownsville in Texas and represents what Trump called "the biggest deal in U.S. history" .

The refinery is designed to process 100% American shale oil and will have the capacity to handle around 168,000 barrels of crude oil per day . Construction is expected to begin in the second quarter of 2026 , addressing a critical gap in America's energy infrastructure that has persisted for decades.

Reliance Industries, which owns the world's largest oil refinery in Jamnagar, India, and has a market capitalization of $206 billion , is backing the project with what America First Refining described as a nine-figure investment tied to a ten-figure valuation .

Addressing America's Refining Shortage

The plant is set to address structural gaps in the United States refining system, which largely relies on facilities built decades ago and designed to process heavier crude oil imported from abroad . The U.S. has a surplus of light shale oil but a shortage of refining capacity designed to process it , creating an opportunity for this specialized facility.

From 2014 to 2024, the U.S. exported nearly 10 billion barrels of crude while importing roughly 28 billion barrels, costing American consumers more than $1.8 trillion. Once operational, the refinery will redirect up to 60 million barrels of U.S. crude annually back into domestic refining .

US oil output has surged over the past 15 years due to the shale boom, yet refinery construction has remained largely stagnant due to environmental regulations, high capital costs and complex permitting processes . Industry estimates suggest the cost of constructing a refinery of this size could reach roughly $6.7 billion .

Economic Impact and Strategic Timing

Trump said the new refinery would deliver billions of dollars in economic impact and create thousands of jobs in the region . The facility will generate thousands of construction and permanent jobs, while offering wages that exceed market averages . Trump emphasized the refinery will "strengthen our National Security, boost American Energy production" and "will be THE CLEANEST REFINERY IN THE WORLD" .

The announcement comes at a crucial time for energy markets. U.S. gasoline prices have jumped sharply since the outbreak of the war with Iran, with oil markets rattled by disruptions and threats to shipping through the Strait of Hormuz. Prices at the pump have risen more than 20 percent in recent weeks as crude oil briefly surged above $100 a barrel .

Looking Ahead

This project represents more than just industrial expansion—it signals a potential shift in how America approaches energy independence. Existing refining capacity in the US stood at about 18.4 million barrels per day at the end of 2024, with capacity expected to expand gradually through upgrades to existing facilities rather than new greenfield projects .

The Brownsville refinery breaks that pattern, offering a blueprint for how international partnerships can drive domestic energy infrastructure development. With global energy markets increasingly volatile and geopolitical tensions affecting supply chains, this facility could serve as a model for future projects that prioritize both energy security and economic growth in American communities.