In an era of economic uncertainty and geopolitical tensions, the United States stands at a crossroads. With refinery capacity stagnant at 18.4 million barrels per day, Americans are paying the price, literally, at the pump. Gasoline costs hover around $3.50 per gallon nationally, straining family budgets and inflating transportation expenses for businesses.
It is time for the Trump administration to revive America’s energy dominance even more by collaborating with oil refiners to expand capacity by 10%. This modest yet impactful increase – adding 1.84 million refined barrels per day – would unleash a cascade of benefits: job creation, GDP growth, lower fuel prices, more tax revenue and enhanced national security.
It’s not just good policy; it’s essential for putting America first.
First, consider the economic boon. The refining sector already contributes $169 billion to U.S. GDP annually, and a 10% expansion would add $50 billion to $80 billion more each year through direct output and economic ripple effects. More jobs and lower fuel costs for businesses and regular people.
This isn’t abstract; it’s real growth fueled by $10 billion to $25 billion in private investments for upgrades at existing facilities, like ExxonMobil’s recent Beaumont expansion, which cost about $2 billion and increased capacity by 250,000 barrels per day.
Using economic multipliers, a 10% increase would create 250,000 to 300,000 high paying jobs. 6,400 direct high-wage positions in refining alone, plus hundreds of thousands in construction, manufacturing, and logistics.
These aren’t low-skill gigs; refinery workers earn more than $100,000 annually on average, supporting families in key states like Texas and Louisiana. For a Trump administration focused on blue-collar revival, this is a slam-dunk: revitalizing heartland economies and counter job losses from overregulation under previous anti-hydrocarbon administrations.
Consumers would feel the relief immediately. Tight capacity has driven refining margins sky-high, contributing to volatile fuel prices. Adding capacity would shave at least 10-15 cents off every gallon of gasoline and diesel, translating to $20 billion to $30 billion in annual savings for American households and businesses. That’s money that can be spent on other priorities.
Imagine trucking companies slashing logistics costs, airlines stabilizing ticket prices, and farmers reducing diesel expenses – freeing up capital for innovation and growth. Lower energy costs act as a hidden tax cut, boosting disposable income and curbing inflation, which hit 9% in 2022 partly due to energy shocks.
By partnering with refiners through streamlined permitting and incentives like tax credits, the Trump team can make energy more affordable again, echoing the administration’s first-term successes in achieving energy independence.
National security is another compelling angle. The U.S. imports 2 million barrels of refined products daily, exposes us to disruptions from OPEC whims, conflicts in the Middle East, shipping disruptions, and makes us dependent on other nations. A 10% boost would nearly replace these imports, improving our trade balance by $20 billion to $40 billion annually, another Trump goal.
This fortifies America’s position on the global stage, reducing reliance on adversaries and empowering allies by freeing up this foreign capacity for their use. Trump’s “energy dominance” agenda proved this works: during his first term, U.S. LNG exports surged, pressuring rivals like Russia and Iran. Now, with domestic energy production at record highs, expanding refining is the missing link to turn crude abundance into refined product supremacy.
Critics will cry environmental foul, but modern expansions incorporate innovative technologies that are far cleaner than importing from less regulated and more polluting foreign refineries.
After all, we are going to use these fuels whether we refine them here or buy them from abroad. It is better to use our own refineries than rely on foreign suppliers.
What if their capacity, shipping, or market forces interrupt our supply of refined fuels? Shortage-caused price spikes!
Refining more oil in our country puts our consumers first with lower prices and less volatility. It puts our national security first with our ability to meet more of our fuel needs domestically. And it puts our economy first with needed GDP growth, job growth and tax revenue growth. All wins.
President Trump and our oil refiners must make it happen. A 10% increase isn’t radical; it’s pragmatic. It creates jobs, cuts costs and secures our future.
America deserves no less.
Frank Lasee is President of Truth in Energy and Climate and former Wisconsin State Senator.
