Key facts
- The Trump administration is engaging with potential investors to reopen defunct petroleum refineries.
- The National Energy Dominance Council is facilitating these discussions.
- The U.S. Environmental Protection Agency is involved in addressing regulatory requirements for restarts.
- The St. Croix refinery in the U.S. Virgin Islands is a key focus for the administration.
- The administration has eased certain regulatory policies to facilitate refinery restarts.
The Trump administration is actively seeking private investors to reopen defunct petroleum refineries across the United States, driven by concerns over rising fuel prices and national security. Discussions have involved potential suitors for facilities in locations ranging from California to the U.S. Virgin Islands, with the National Energy Dominance Council (NEDC) facilitating connections between investors and relevant government agencies.
Officials have consulted with the U.S. Environmental Protection Agency (EPA) on regulatory hurdles, particularly for the St. Croix refinery, which has a history of environmental issues. This refinery is a priority for the administration due to its strategic location and past role in processing Venezuelan crude. The White House has also eased certain policies, such as rescinding a rule requiring new permits for idled refineries, to encourage restarts.
Among those engaging with the administration are backers of the Freedom Fuel Network, who reportedly sought a Pentagon contract to help finance the purchase and refurbishment of the St. Croix refinery. However, a White House official stated they did not facilitate discussions between this group and the Pentagon. The administration has also publicly criticized California's governor over refinery closures in the state, where companies like Phillips 66 and Valero have ceased operations due to regulatory and market pressures.
Overall U.S. refining capacity has fallen in recent years, with remaining refineries operating at high utilization rates to meet demand. The push to reopen or build new refineries aligns with the administration's efforts to increase domestic energy production and secure reliable, affordable energy supplies, especially in light of global supply disruptions.