Trump Admin Considers Reopening Shuttered Refineries Amid Global Fuel Shortage

The Trump administration is considering reopening shuttered oil refineries to address high gasoline and diesel prices. The move comes as the global market faces a tight supply of petroleum products due to reduced refining capacity in Russia and the Middle East, as well as refinery closures in Europe and the US.

According to the Institute for Energy Research, nearly 10% of the world's refining capacity is offline due to factors such as the closure of the Strait of Hormuz, Ukrainian attacks on Russian refineries, and China's export ban. As a result, prices for middle distillates, diesel, jet fuel, and heating oil are a concern.

The Trump administration has taken steps to make it easier to restart shuttered refineries. Last year, the EPA ended its policy of requiring refineries and other industrial sites to obtain new permits when resuming operations after two or more years of inactivity.

The St. Croix refinery in the US Virgin Islands is one facility that could be reopened. The refinery was shut down in 2021 due to operational incidents, but a federal court overturned the EPA's order requiring the plant to undergo a lengthy permitting process before restarting operations.