New Texas Refinery Signals Shift in U.S. Energy Infrastructure Strategy

Refining shifts could influence fuel and input costs.

Crude Oil 1280x720.jpg

Market Day Report

LUBBOCK, TEXAS (RFD NEWS) — America First Refining announced plans to construct the first new U.S. oil refinery in roughly 50 years at the Port of Brownsville, Texas, supported by a long-term offtake agreement and major capital investment.

The company says the project includes a binding 20-year agreement with a global energy partner covering about 1.2 billion barrels of U.S. light shale oil and production of roughly 50 billion gallons of refined products. Construction is expected to begin in the second quarter of 2026, positioning the facility to process approximately 60 million barrels of domestic crude annually once operational.

For markets, the development reflects continued growth in U.S. shale output alongside longstanding constraints in refining capacity designed for lighter crude streams. The refinery is engineered specifically for light shale oil and located at a deep-water Gulf Coast port to support both domestic distribution and export channels.

Regionally, the project is expected to create construction and operational jobs while strengthening Gulf Coast refining infrastructure and supply chain logistics tied to fuel markets.

Looking ahead, analysts will watch permitting timelines, financing progress, and global demand trends to gauge how quickly the facility influences domestic refining capacity and energy flows.

Related Stories
The Tennessee Department of Agriculture is helping connect veterans with resources to pursue careers in farming and agriculture.
USDA released the November WASDE Report on Friday, the first supply-and-demand estimate to drop since September, just before the 43-day government shutdown.
AFBF economist Faith Parum breaks down the potential impact of the proposed policy change to allow year-round sales of E15 biofuel.
The request follows pressure from the American Sheep Industry Association (ASIA), which called for a formal investigation into whether lamb imports from Australia and New Zealand have cut into the U.S. market share.
Learn the conditions farmers must meet to qualify for this new three-year tax deferral on farmland sales, how much it could save, and other details to consider.
RFD-TV farm legal expert Roger McEowen digs into the details on how to make your rural property dreams a reality — and avoid a living nightmare.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Export Inspections In Bushels Show Mixed Momentum Patterns
Expect firmer shop prices, leaner inventories, and selective hiring in ag-adjacent businesses — plan parts, service, and financing needs earlier.
U.S. Farmers Face Shifting Harvest Pace, Basis, and Input Costs
Lewis Williamson with HTS Commodities joined RFD-TV’s Market Day Report to share insight into what’s happening on the ground and in the markets.
Expect choppier basis and wider bids — hedge earlier, keep logistics flexible, and watch Argentina and India headlines for near-term opportunities.
Even in this strong market, some beef producers are leaving money on the table by not following proven marketing practices.