Trump admin using war time authority to boost fuel production in Texas

By Bethany Blankley
The Center Square

At a political rally in Tyler, Texas, on Tuesday, Vice President JD Vance said the Trump administration has already begun using wartime authority to expand refinery production in deep east Texas.

“I am pleased to announce that the Trump administration, working with the refinery at Delek, has used the Defense Production Act and we’re going to expand the refinery right here in Tyler, Texas,” he said. “We want millions of gallons of commercial-grade and military-spec fuel to come out of this refinery, in addition to what it’s already producing.”

The Defense Production Act of 1950 authorizes the president to establish priorities to expand and expedite the manufacturing of supplies and essential products and acquire materials among other measures to “provide for price and wage stabilization … and facilitate the production of goods and services necessary for the national security.”

Vance was referring to a Tyler refinery founded in 1934 and purchased by Delek in 2004.

Delek refineries primarily process light crude oil sourced from the Permian Basin, East Texas, local operators and from offshore in the Gulf. In the past two years, it says it’s doubled its refining capacity and gained a large presence in the Permian Basin, increasing access to low-cost crude oil. Delek says its refinery operations “are known for their strong safety records, dedication to excellence, and professional and reliable service.”

The Tyler refinery produces gasoline, distillates, petroleum coke and LPG products, which are distributed primarily to markets in northeast Texas and the surrounding region.

Delek owns and operates four refineries with a combined crude throughput capacity of 302,000 barrels per day (bpd). Two of its refineries are located in Texas: in Tyler and Big Spring. One is located in Krotz Springs, Louisiana, and the other in El Dorado, Arkansas.

Vance said expanding output at the Tyler refinery will reduce gas prices and other costs for Americans and create jobs in the region.

“What this means for you and your families is lower costs to fly from one place to another. It means lower costs to drive your car into work every single day,” he said. “It means a more reliable energy supply, but also a stronger national defense. It will also mean hundreds of good paying new jobs … right here in Smith County. What it really means is more opportunities for Texans, for your kids and your grandkids to build a life without having to leave the community that they love.”

Tyler resident and Texas Railroad Commissioner Wayne Christian lauded the announcement and told The Center Square in an emailed statement: “American energy security depends on robust domestic oil production and refining. President Trump and Vice President Vance understand that better than anybody. That’s why I applaud their decision to expand refining capacity right here in our backyard. The additional fuel produced at this facility will further bolster the local economy, support our military, and improve domestic fuel affordability,” he said in an emailed statement to The Center Square.

It’s unclear how the Defense Production Act would apply to other refineries in Texas. Texas has the most refineries in the country of 34. They are primarily located along the Gulf Coast.

Despite suffering months of job losses, the Texas oil and gas industry has broken production records while also reducing emissions, The Center Square reported.

Texas crude and LNG exports have also continued to meet global demand as the Russia-Ukraine conflict continues and U.S.-Israel conflict with Iran has disrupted supply in the Persian Gulf.

Texas remains the top state for crude production, producing 43% of America’s crude oil in 2024. This equates to an average of 5.8 million bpd with monthly peaks reaching 5.9 million bpd, The Center Square reported.