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Cedar Global Markets
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Cedar Global MarketsData via FRED® (St. Louis Fed). Not endorsed by the St. Louis Fed. Delayed / as published.

White House Weighs Defense Production Act to Expand U.S. Oil Refining Capacity

in Energy, Americas
Reading Time: 1 min read
A U.S. oil refinery with distillation towers, pipe racks, and a flare.
byCedar Global Markets
September 12, 2026
0

The White House is weighing how to use the Defense Production Act to expand U.S. oil refining capacity after President Trump met nearly a dozen refiners, two sources familiar with the plans told Reuters. No final decisions were made, and participants left expecting talks to continue.

Refiners said federal support is better aimed at efficiency upgrades or expansions of existing plants rather than financing a new refinery. Utilization has reached 98% according to the latest data cited by Reuters. The talks build on an April 20, 2026 presidential determination under section 303 on domestic petroleum production, refining, and logistics.

Spokeswoman Taylor Rogers said officials are evaluating options via regulatory reform, faster permitting, and more investment. America First Refining’s planned Brownsville plant of about 168,000 barrels per day is a test case; Reuters said any Defense Production Act funding was unclear. This is weighing, not an executed order for new capacity.

Sources: Reuters exclusive / Jarrett Renshaw (weighing DPA; no final decisions; nearly a dozen refiners; 98%; Brownsville ~168kbd unclear funding; Rogers); Straits Times Reuters reprint; Bloomberg Law Reuters digest; White House Apr 20, 2026 §303 determination (background authorization).

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