August 24, 2026 [ Institute for Energy Research ]- These moves aim to reverse recent U.S. closures (Phillips 66’s Los Angeles and Valero’s Benicia) driven by regulations, strengthen domestic supply chains, and reduce reliance on disrupted global refining infrastructure.

Trump Administration Considers Reopening Shuttered Refineries
 
The Trump Administration is exploring ways to expand U.S. refining capacity by reopening shuttered facilities (including the St. Croix refinery in the U.S. Virgin Islands) and supporting the first major new refinery in decades in Brownsville, Texas, to boost fuel supply and ease high consumer prices.
 
Global refining capacity is estimated 5 million barrels per day short due to the Ukraine/Russia and Middle East/Iran conflicts, Ukrainian attacks on Russian plants, China’s fuel export ban, and reduced shipments via the Strait of Hormuz, keeping distillate and gasoline prices elevated despite lower crude costs.
 
U.S. refining capacity has fallen nearly 5% from its ~19 million b/d peak in 2020; existing plants are already running above 97% utilization (processing 17.3 million b/d), limiting further output of gasoline and especially constrained middle distillates.
 
The St. Croix facility (strategic Atlantic location, capable of processing Venezuelan crude) could restart at up to 180,000 b/d capacity in about 18 months at an estimated cost of $402–686 million, aided by EPA policy changes that eliminate new permitting requirements after prolonged idling.
 
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