Mukesh Ambani’s confidence in backing first new US oil refinery in 50 years

“It is because of our America First Agenda, streamlining permits and reducing taxes, that have brought billions of dollars in deals back to our nation. A new refinery at the Port of Brownsville will feed American markets, strengthen our national security, boost American energy production, generate billions of dollars in economic impact and will be THE CLEANEST REFINERY IN THE WORLD. It will boost global exports and bring THOUSANDS of long-awaited jobs and growth to our nation. A Region that deserves it. This is AMERICAN ENERGY DOMINION!

The RIL has not yet responded to Trump’s announcement. It comes at a time when there is a sharp rise in crude oil and fuel prices; Crude oil had crossed the $100 per barrel mark on Monday amid the conflict in West Asia that began on February 28 with the US and Israeli attacks on Iran.

Although construction of the refinery will take years, it is seen as a sign from Trump amid rising fuel prices in the United States and just months before the country’s midterm elections. The last major refinery built in the United States was the Marathon Refinery, built back in 1976, when oil cost less than $5 a barrel.

For Reliance, diversifying into American shale refining protects against problems on the West Asia route. RIL already obtains Venezuelan crude oil as a hedge.

The refinery project was being developed by Element Fuels, which had announced in 2024 that it had received the necessary permits to build a refinery. Element Fuels and America First Refining appear to be the same entity or closely related to each other. Notably, Element Fuels’ website now redirects to that of America First Refining, and Element Fuels founder and president John V. Calce holds the same position at America First Refining.

“In February, America First Refining received a 9-figure investment from a large global company with a 10-figure valuation. AFR also signed a binding 20-year purchase term sheet with the same large global company securing commitments to purchase, process and distribute US-produced energy sourced exclusively from US shale oil. The company will officially break ground on the new refinery in the second quarter of 2026,” America First Refining said. He did not name the “global supermajor,” but Trump’s comments suggest it is RIL.

As for the $300 billion deal Trump mentioned, it appears to be about the value of the crude oil the refinery will process and the fuels it will produce over 20 years. According to America First Refining, under the deal, the 60 million barrel per year refinery will purchase and process 1.2 billion barrels of light U.S. shale oil worth an estimated $125 billion, and will produce 50 billion gallons of refined products, worth $175 billion. “The US trade imbalance will improve by $300 billion,” America First Refining said, indicating the facility could be export-oriented. The proposed location of the refinery – the Port of Brownsville – also suggests that the refinery could be export-oriented.

Most U.S. refineries are designed to process crude oils that are much heavier than the shale oil that the United States produces in large quantities. This leads the United States, despite being one of the main oil producers worldwide, to import large volumes of heavy crude oil from other geographies and export its own shale oil.

“The refinery is specifically designed to process light U.S. shale oil, which is cleaner, more efficient and less expensive to process than heavier imported crude oil. Unlike many existing U.S. refineries that rely on foreign oil, this facility does not rely on or need imported crude oil, strengthening the national and economic security of the United States,” America First Refining said.

“From 2014 to 2024, the United States exported nearly 10 billion barrels of crude oil while importing approximately 28 billion barrels, costing American consumers and workers more than $1.8 trillion. Once operational, the AFR refinery will redirect up to 60 million barrels of U.S. crude oil annually to domestic refining, strengthening American industry, energy security and economic growth,” he said.