Proposed Refinery in Texas Could Run U.S. Crude

---

Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

---

Summary

Backers of a proposed U.S. refinery say it would be designed to process U.S. shale oil.

---

New Refinery Proposed for Texas

A proposed crude oil refinery rebranded to align with U.S. President Donald Trump's campaign platform could be processing 165,000 barrels per day (BBL/d) by the end of the decade, should early proclamations have merit. IIR Energy has been tracking the project since its first development in 2024, but it received new tailwinds with the Trump administration's recent support. The timing of the backing comes as the administration is seeking a variety of strategies to blunt the rise in oil and gasoline prices caused by the U.S./Israel-vs.-Iran war in the Middle East.

"This project represents a historic step forward for American energy production," said John Calce, the chairman and founder of startup America First Refining. "For the first time in half a century, the United States will build a new refinery designed specifically for American shale oil."


U.S. President Donald Trump, running on an "America First" agenda, on Tuesday hinted of the new development, which he said would be backed by investments from India-based Reliance Industries. Reuters reported that New Delhi's support would help offset a $300 billion trade deficit with India. Reliance had no statement on the developments.

Hillary Stevenson, a vice president for Energy Intelligence at IIR Energy, said that at best it would take at least three years before a new refinery of that scale could come online.

"While we are tracking a few small grassroots projects, none of them have reached a final investment decision, and I doubt any of them will move forward," she said.

Brownsville Grassroot Refinery Details
IIR Energy has been tracking the Brownsville Refinery project since 2024. Slated for the port city of Brownsville, Texas, the America First Refining (previously Element Fuels) facility would process domestic shale crude oil for feedstock to meet its planned throughput capacity of 165,000 BBL/d.

The project is considered low-probability and has an estimated $5 billion total investment value. Kickoff could be as soon as mid-2026 with potential completion by end of 2029.

New Refinery Would Expand Light Sweet Crude Diet in Gulf Coast
A new refinery on the U.S. Gulf Coast would be a novel addition to the refineries there that typically run heavier crude oil slates from foreign suppliers. Although, some refiners are investing in running more light, sweet crude oil found in domestic shale basins.

The top 10 foreign suppliers of crude oil all produce heavy slates, with No. 1 Canada sending over around 4 million BBL/d on average. The timing of the announcement, meanwhile, is curious given Trump's early-year claims to Venezuelan crude oil, which is heavy enough to require diluting agents to move through midstream infrastructure.

Key Takeaways

• A 165,000-BBL/d refinery is proposed for Texas.
• The refinery would process domestic shale crude oil.
• The project is assessed as having a low probability of moving forward as planned.
• Gulf Coast refineries typically process imported heavy crude oil.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).