Will the Iran-U.S. conflict trigger an energy crisis? Trump: Texas will see the first new refinery in the U.S. in 50 years!

Caixin News, March 11 (Editor: Huang Junzhi) According to CCTV News, on Tuesday (March 10) local time, U.S. President Donald Trump announced plans to build a new oil refinery in Brownsville, Texas.

On the same day, Trump posted on his social media platform Truth Social that the United States will see its first new refinery in 50 years, with the project invested in by Reliance Industries Limited, an Indian conglomerate owned by billionaire Mukesh Ambani.

LSEG data shows that Reliance Industries Limited owns the world’s largest refinery in Jamnagar, India, with a market value of $206 billion.

Trump wrote, “I am proud to announce that ‘America First Refining’ (AFR) will open the first new refinery in the United States in 50 years in Brownsville, Texas.”

“America is returning to true energy dominance! This is a historic $300 billion deal — the largest deal in U.S. history,” he added.

At the time of this announcement, energy prices were soaring due to the US-Iran conflict. Trump is considering several options to lower oil and gasoline prices, including activating emergency reserves and providing military escort for tankers passing through the Strait of Hormuz.

AFR stated in a release that the company plans to break ground on the new refinery in the second quarter of this year and has signed a 20-year fuel sales agreement. The agreement was signed with Reliance Energy. The refinery will create thousands of construction and permanent jobs, offering wages above the market average.

Trump continued, “It is precisely because of our ‘America First’ policies—streamlining approval processes and lowering taxes—that billions of dollars are flowing back into our country. The new refinery at Brownsville port will supply fuel to the U.S. market, strengthen national security, increase U.S. energy production, generate billions of dollars in economic benefits, and become one of the cleanest refineries in the world.”

“This will drive exports globally and bring thousands of long-awaited jobs and economic growth to this rapidly developing region. This is the embodiment of America’s energy leadership. America First, forever!” he added.

According to the official website, AFR is the first and only refinery designed specifically to process 100% U.S. shale oil (average API gravity 47°). Compared to heavier imported crude oil (API gravity 30°), lightweight shale oil is cleaner, more efficient, and less costly to process.

Analysis shows that, unlike many existing U.S. refineries that rely on foreign oil, this facility does not need to import crude oil, enhancing U.S. national and economic security.

Additionally, the main advantages of the refinery include: an annual processing capacity of 60 million barrels, all from U.S. light shale oil; a strategic location at a deep-water port in the U.S., facilitating distribution to domestic and international markets; and producing some of the cleanest gasoline, diesel, and jet fuel at scale in the U.S.

“This project marks a historic step forward in U.S. energy production,” said John V. Calce, Chairman and Founder of AFR. “For the first time in half a century, the U.S. will build a brand-new refinery designed specifically for U.S. shale oil. Thanks to President Trump’s leadership and the revival of America First energy policies, we are creating thousands of high-quality jobs while ensuring more of our energy resources are refined domestically. This refinery will be one of the cleanest and most efficient in the world.”