Energy Secretary Wright Says the Administration Is Talking With Owners of Every Closed Refinery About Reopening
Wright said the Energy Department wants to find the most practical shuttered plant to restart. The American Petroleum Institute says refiners are already running at 95% to 100% of capacity, and blames China's diesel export ban.
Energy Secretary Chris Wright says the Trump administration is looking at bringing closed oil refineries back online to make more fuel. The Daily Caller News Foundation reports he made the comments Tuesday in Houston, citing Argus Media and Reuters coverage of the event.
What Wright said. The administration has been talking with the owners of every refinery that closed in the past decade, with the goal "to find what's the most practical one to get a refinery up and running." "We are talking about reopening every refinery we can," he said. He added, "There are dialogues there, and that's a tough challenge. I'm not saying all these are going to happen."
Which plants. Argus reported that one of them is Valero's refinery in Benicia, California, the most recent U.S. refinery to shut down. Phillips 66 said in October 2024 that it planned to close its refinery near Los Angeles by the end of 2025. Phillips 66 told the Daily Caller that its talks with government officials are private. The Energy Department, the refining trade group AFPM, Valero and Delek did not immediately respond to requests for comment.
Why now. Reuters reported that diesel prices hit record highs because of the Iran war, which began Feb. 28, and Ukraine's attacks on Russian refineries. AAA put the national diesel average at about $6.32 a gallon Wednesday, down from about $6.51 a month earlier. Wright told CNN on Sunday that fuel prices are coming down and "will continue to come down."
The industry view. American Petroleum Institute CEO Mike Sommers told Reuters that refiners are running at 95% to 100% of capacity and have put off scheduled maintenance. "The American refiners are doing everything they can," he said, adding that China's government is barring diesel exports and that Beijing "is really going to be the key if we're going to get long-term prices down."
Other steps. Energy Under Secretary Kyle Haustveit said the department is working with partners "to find new and innovative ways to get more throughput." Vice President JD Vance said on Oct. 13 that the administration plans to use the Defense Production Act to help Delek expand its Tyler, Texas refinery. The department also said Wednesday it will lend up to 315,000 barrels from the Northeast Home Heating Oil Reserve. Reuters reported the administration has also said commercial vehicles can use red-dyed diesel, normally reserved for off-road equipment.
What is unclear. The report does not name a plant that will actually reopen or give a timeline or cost.