1) Trump to expand Texas refinery using Defense Production Act
The Trump administration will invoke the Cold War-era Defense Production Act to support the expansion of Delek US’s oil refinery in Tyler, Texas.
The move broadens the administration’s push to lower energy prices. Earlier steps, including pressing Europe to tap its fuel stockpiles, expanding access to tax-exempt dyed diesel and temporarily lifting sanctions on Russian diesel, have only slightly lowered fuel prices, which remain at or near record highs for this time of year.
Expanding the Tyler facility would help offset a wave of U.S. refinery closures in recent years. Replacing that lost capacity was a priority for the administration even before war broke out in the Middle East. The country’s remaining refineries have run at or near capacity this year to keep U.S. and global markets supplied, as the ongoing war with Iran and Ukrainian attacks on Russian refineries have crimped flows.
Any expansion, however, will take years and add relatively little to U.S. fuel production. The Tyler refinery can process up to 74,000 barrels per day, about 0.41% of total U.S. capacity, according to the Energy Information Administration.
2) Home heating oil prices are soaring, users’ winter bills could rise 21%, federal outlook shows
Americans who heat their homes with oil face sharply higher costs this winter, while households that rely on natural gas or propane may get some relief. Heating oil prices are expected to average $5.26 a gallon this season, up 34% from last winter, according to the U.S. Energy Information Administration’s annual Winter Fuels Outlook. The agency also predicts a warmer winter, which could reduce consumption. As a result, the average household using heating oil is projected to spend $2,115 from November through March, about 21% more than last year.
The outlook is better for most other households. Homes heated primarily with natural gas are expected to spend an average of $640 this winter, down 9%, while those using propane are forecast to spend $1,246, down 3%. Households that heat with electricity are projected to spend $1,196, up 4%.
3) President Trump announces $15 billion steel plant in Iowa
The president recently announced that Minnesota-based Mesabi Metallics will build a steel plant in southeastern Iowa, with production set to begin in 2030. The plant will use iron-oxide pellets from the company’s federally backed mine in Minnesota, which will be shipped to Iowa and converted into steel. Mesabi Metallics is owned by Essar Group, an industrial conglomerate based in Mumbai, India.
The project will be the first “mega-steel plant” built in the U.S. since the 1960s. Its first phase is projected to produce 7.5 million tons of steel a year, eventually reaching 10 million tons. The White House said the project will support as many as 6,000 construction jobs and 1,750 permanent jobs once the facility is running. The administration says more than $47 billion in steel sector projects are underway nationwide.
4) Department of Interior will skip environmental reviews for winter Arctic drilling
The Trump administration will let oil companies conduct a range of exploration activities in the National Petroleum Reserve in Alaska this winter, including seismic surveys, ice road and airstrip construction, and well drilling, without first completing environmental reviews under the National Environmental Policy Act.
“This categorical exclusion builds on that record to allow developers to more nimbly locate energy resources in the Petroleum Reserve, ultimately increasing domestic energy supply, leading to stable energy costs and more revenue for Alaskan communities and the American public,” Bureau of Land Management Alaska State Director Kevin Pendergast said in a statement.
More than half a dozen oil and gas companies hold leases in the 22-million-plus-acre reserve and could benefit from the exclusion this winter. ConocoPhillips, owner of the planned Willow project, is the reserve’s major producer.
5) Helium Added to US Critical Materials List
The U.S. Department of Energy (DOE) has added helium to its Critical Materials List, according to a recent notice. DOE described helium as a non-substitutable material essential to semiconductor manufacturing and other critical functions, including leak testing for natural gas infrastructure and quantum computing. The agency said helium’s inclusion is justified by the growth in semiconductor production needed to expand U.S. artificial intelligence and data center infrastructure. DOE also noted helium’s essential role in medical imaging and aerospace technologies.
