Key facts
- The Trump administration will use the Defense Production Act to expand a Delek US Holdings refinery in Tyler, Texas.
- Vice President JD Vance announced the plan to increase fuel production.
- The expansion aims to lower consumer costs and ensure a more reliable energy supply.
- The Tyler refinery currently processes about 74,000 barrels per day.
The Trump administration is set to utilize the Defense Production Act, a Cold War-era law, to increase the processing capacity of a refinery in Tyler, Texas, owned by Delek US Holdings. Vice President JD Vance announced the decision, framing it as a measure to combat rising fuel prices and ensure a more stable energy supply for consumers. Vance stated that the expansion would yield millions of gallons of both commercial grade and military-spec fuel, which he believes will translate into lower costs for transportation and a more dependable energy infrastructure. The refinery in Tyler, located approximately 322 kilometers (200 miles) north of Houston, currently processes around 74,000 barrels of fuel daily. Details regarding the allocated funding for the expansion and the projected increase in refining capacity were not immediately available from the White House or Delek. Such expansions are typically complex, capital-intensive projects that can take months or even years to complete. This move follows reports that the administration is exploring ways to overcome state and local regulations that may impede energy production and to use the Defense Production Act for expanding refining capabilities.