Trump announces the first new refinery in the U.S. in 50 years: $300 billion project in Texas, energy strategy further upgraded

On March 11, U.S. President Donald Trump announced that a new large-scale refinery will be built at the Port of Brownsville, Texas, named “America First Refining.” Trump stated that the project will involve an investment of approximately $300 billion and called it the first new large refinery in the United States in the past 50 years, aiming to strengthen U.S. energy supply capabilities and expand export capacity.

According to Trump, the refinery will be developed in partnership between American companies and India’s energy giant Reliance. Once completed, it will primarily serve the domestic market, support energy exports, and enhance U.S. oil processing capacity. Trump said the facility is expected to create thousands of jobs and bring new economic activity to southern Texas.

Trump posted on social media that this investment reflects a major shift in U.S. energy policy. He pointed out that lower corporate taxes and faster approval processes are attracting large energy projects back to the U.S., and emphasized that the refinery will become “one of the cleanest refineries in the world.” He also stated that this project will further solidify America’s energy dominance and improve national energy security.

The announcement comes amid global energy market volatility. Recent escalations in the Middle East have raised concerns about oil supply, with international crude oil prices soaring to $119 per barrel, reaching their highest level since 2022. With major oil-producing countries reducing output and geopolitical tensions intensifying, the outlook for global energy supply remains uncertain.

White House Press Secretary Karoline Leavitt said at a press conference that the recent rise in oil and gas prices may be a short-term phenomenon. She stated that the government is closely monitoring market changes and maintaining communication with the energy industry to stabilize the domestic energy market. She also emphasized that the U.S. government will take measures to ensure the safety of shipping through the Strait of Hormuz and prevent disruptions to key energy transportation routes.

Rising oil prices have already had ripple effects on the U.S. economy. Increased fuel costs have added to consumer burdens, especially in the pickup truck and SUV markets. If gasoline prices reach $4 per gallon, the monthly fuel expense for an average pickup could increase by about $50; at $5 per gallon, the additional cost could approach $100.

Energy price fluctuations are also putting pressure on the automotive manufacturing industry. Due to the high proportion of pickup trucks, Ford’s stock has recently experienced a significant decline. Meanwhile, high oil prices could also push inflation higher and impact consumer spending and overall economic expectations.

As the U.S. presidential election approaches, energy costs have become a key issue for voters. Analysts believe that the new refinery project not only reflects adjustments in U.S. energy policy but could also influence domestic energy supply and the global oil market in the coming years.