Trump Urges Oil Executives to Build More Refineries

Donald Trump met with oil executives at the White House on Tuesday to urge the construction of more refineries. The president argued that increasing refining capacity is necessary to lower gasoline prices before the November midterms, particularly as a deal to acquire a stake in Venezuelan oil reserves increases the need for processing infrastructure.

During the meeting, the administration and executives discussed strategies to expand capacity, including reducing regulations, accelerating the permitting process, and increasing investments. Representatives from Chevron, Valero Energy, Marathon Petroleum, and PBF Energy attended the session, though ExxonMobil declined to send a representative.

Industry executives and analysts maintain that building new refineries is economically unviable. They cite high construction costs, long timelines, and a long-term decline in gasoline demand caused by the rise of electric vehicles. Consequently, many companies are prioritizing the modernization of existing facilities to increase the production of diesel and petrochemicals rather than building new sites.