Oil
US uses Defense Production Act to expand Texas refinery
Vice President JD Vance announced that the US administration is utilizing a Cold War-era law to expand a Texas refinery as part of efforts to lower fuel prices.
Key points
- The Trump administration is working with Delek US Holdings to expand its Tyler refinery in Texas.
- The initiative invokes the 1950 Defense Production Act to finance domestic energy projects.
- High fuel costs remain a central concern for voters ahead of the upcoming November midterm elections.
What happened
According to Rigzone, Vice President JD Vance announced plans to collaborate with Delek US Holdings Inc. to expand an oil refinery in Tyler, Texas. Speaking during a campaign stop, Vance stated that the administration is utilizing the 1950 Defense Production Act to fund the project.
Delek's facility in Tyler is one of the smaller refineries in the country, with a processing capacity of 74,000 barrels per day. While the financial scope of the investment remains unspecified, a White House official noted that the facility is one of several receiving funds through the Defense Production Act.
Why it matters
Rigzone reported that the administration is facing mounting pressure from voters regarding high living costs, including fuel prices, ahead of the November 3 midterm elections. Global fuel supplies have been strained by conflicts in Ukraine and the Middle East, alongside attacks on Saudi facilities, leaving markets vulnerable to disruptions.
President Donald Trump previously issued determinations under the defense law targeting domestic petroleum, liquefied natural gas, coal power, and grid infrastructure. However, analysts note that refining projects require years to complete, and no major new US oil refinery has been built since the late 1970s.
What comes next
In addition to the refinery expansion, the administration has pursued other measures to lower energy costs, such as a deal with Russia to access diesel supplies and eased limits on certain tax-exempt fuel varieties. The upcoming congressional elections will test voter sentiment on these economic interventions.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
